Central Bank of Jordan Circular on IFRS 16 Leases and Regulatory Capital

In the name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

Number: 3/10/8271
Date: 7/10/1440 AH
Corresponding to: 11/6/2019 AD

Circular to all banks operating in the Kingdom

Greetings,

In light of the actual implementation of International Financial Reporting Standard (IFRS) No. 16 starting from 1/1/2019, and for the purpose of applying regulatory capital instructions in accordance with the guidelines issued by the Basel Committee on Banking Supervision regarding this matter, it is required to include Right of Use Assets within the risk-weighted assets when calculating capital adequacy and within the denominator of the financial leverage ratio, assigning them a standard risk weight of (100%).

Please accept our highest respect,

The Governor
Dr. Ziad Fries

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P.O. Box 37 • Amman 11118 Jordan • Phone 4630301 • Fax 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo Form (1/1/10/1)

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