Regulatory Alerts2017-06-09
Added · Updated
Central Bank of Jordan Instructions on Banks Ownership of Shares and Stocks in Companies’ Capitals
The Central Bank of Jordan issued Instructions no (12/2002) prohibiting banks from acquiring non-financial subsidiaries and limiting direct or indirect ownership in non-financial companies to 10 percent of subscribed capital. The regulations cap a bank's total investment contribution in all companies at 50 percent of its own subscribed capital and require prior written approval for holdings in other deposit-taking institutions. Banks were mandated to adjust existing non-compliant positions by August 2, 2002, for single-company limits and August 2, 2005, for total contribution limits, while new acquisitions exceeding 5 percent must be reported within 15 days.
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