Regulatory Alerts2022-04-29
Added · Updated
Central Bank of Jordan Regulatory Capital Instructions for Islamic Banks
The Central Bank of Jordan mandates that all licensed Islamic banks in the Kingdom comply with revised regulatory capital requirements based on Islamic Financial Services Board Standard No. (72/2018). The instructions establish minimum capital ratios, requiring a total capital adequacy ratio of at least 12%, with Common Equity Tier 1 at 6%, Additional Tier 1 capped at 1.5%, and Tier 2 capped at 2%. Banks must also maintain a 2.5% conservation buffer from Common Equity Tier 1 and adhere to specific consolidation rules for subsidiaries and Takaful companies.
Topics
capital
islamic-finance
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