Central Bank of Jordan Circular on Stress Testing and Sensitivity Analysis for Banks

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

Central Bank of Jordan

Ref: 2002/2/23
Date: 7/7/1440 AH
Corresponding Date: 14/3/2019 AD

Circular to Banks Operating in the Kingdom

Greetings,

Based on the Instructions for Stress Testing of Banks Operating in Jordan No. (2016/1) dated (2016/12/06), we hereby enclose the required sensitivity analysis tests and scenario tests that banks must perform based on data as of 31/12/2018. Sensitivity tests shall be applied at the level of bank branches in Jordan and at the consolidated data level, whereas scenario tests shall be applied at the level of bank branches in Jordan only. The results of these tests must be submitted to us, filled out according to the attached forms, no later than the end of April 2019. The Central Bank will continue to provide banks with the required tests annually, taking into account risk developments at the local, regional, and international levels.

Please accept our highest regards.

Governor
Dr. Ziad Fries

P.O. Box 37 • Amman 11118 Jordan • Tel: 4630301 • Fax: 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo