Regulatory Alerts2017-12-21
Added · Updated
Central Bank of Jordan Circular on the Treatment of Interbank Repurchase Agreements for Liquidity and Regulatory Requirements
The Central Bank of Jordan mandates that licensed banks process interbank repurchase agreements for legal liquidity ratio and other regulatory requirements using the same mechanism as agreements concluded with the Central Bank. This directive clarifies that previous instructions do not restrict the processing mechanism solely to Central Bank agreements. The rule applies specifically to requirements under the Financial Data and Disclosures Instructions. The circular was issued on December 21, 2017.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Reference No.: 4/ 16852 Date: 3 Rabi' al-Thani 1439 AH Corresponding to: December 21, 2017 AD
Circular to Licensed Banks
Greetings,
In light of inquiries received regarding the mechanism for processing interbank repurchase agreements in terms of the legal liquidity ratio or any other regulatory requirements, please be informed that for the purposes of legal liquidity ratio requirements, interbank repurchase agreements will be processed using the same mechanism as repurchase agreements concluded with the Central Bank. This is based on our Circular No. (6793/2/2/10) dated June 18, 2012, and subsequent Legal Liquidity Instructions No. (2007/37) dated November 11, 2007. The aforementioned circular and instructions indicated that repurchase agreements are to be processed in general, and do not restrict the processing mechanism solely to repurchase agreements concluded with the Central Bank. The same applies to other regulatory requirements, specifically those related to the requirements of the Financial Data and Disclosures Instructions; they will be treated within the same framework as repurchase agreements concluded with the Central Bank.
Please accept our highest regards,
[Signature] Governor Dr. Ziad Frieze