Regulatory Alerts2024-03-12
Added · Updated
Central Bank of Jordan: Required Stress Tests for Banks Based on End-2023 Data
The Central Bank of Jordan requires banks operating in the Kingdom to perform specific sensitivity and scenario stress tests using data as of December 31, 2023. Banks must apply these tests, covering credit, market, liquidity, climate, geopolitical, and operational risks, at both the branch and consolidated levels by the end of April 2024. The directive mandates the use of attached models and defines specific shock parameters, such as a 15-25% currency devaluation and a 100-200 basis point interest rate shift, to assess impacts on non-performing loans and capital adequacy.