Regulatory Alerts2020-04-27
Added · Updated
Central Bank of Jordan Circular on Interest Rate Adjustments and Transparency
The Central Bank of Jordan mandates that all banks operating in the Kingdom adjust variable interest rates on credit facilities quarterly, allowing banks to define the specific quarterly period. Banks are prohibited from raising interest rates for customers following the April 2020 reduction until the end of 2020, unless the Central Bank itself changes rates, and must reflect actual overnight interbank lending market changes instead of JODIBOR values for existing loans. Additionally, banks must notify all customers via SMS of new interest rates, monthly installments, and adjustment periods, with these provisions taking effect immediately and repealing conflicting prior instructions.