Regulatory Alerts2021-02-27
Added · Updated
Central Bank of Jordan Regulatory Capital Instructions No. 67/2016
The Central Bank of Jordan issues Regulatory Capital Instructions No. 67/2016 to implement Basel III standards for all banks operating in the Kingdom on a consolidated and non-consolidated basis. The document establishes minimum capital adequacy ratios, requiring a total capital of at least 12% of risk-weighted assets, composed of Common Equity Tier 1 (6%), Additional Tier 1 (max 1.5%), and Tier 2 (max 2%), plus a 2.5% conservation buffer. It defines qualifying criteria for capital instruments, consolidation mechanisms for subsidiaries, and specific risk coverage rules for credit, operational, and market risks.
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