Regulatory Alerts2016-12-07
Added · Updated
Central Bank of Jordan Instructions on Stress Testing for Banks Operating in Jordan No. (2016/1)
The Central Bank of Jordan issues Instructions No. (2016/1) to replace the 2009 stress testing framework, requiring banks to integrate stress testing into their risk governance and capital planning processes. Banks must conduct annual sensitivity and scenario analyses, utilizing infrastructure and qualified staff, while the Board of Directors retains ultimate responsibility for the program. The Central Bank will annually prescribe specific tests and may impose restrictions on dividend distributions if results indicate inadequate capital or liquidity measures.
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