Regulatory Alerts2021-01-07
Added · Updated
Circular on Automation of Financial Soundness Indicators and Non-Performing Loans via CBJOSS
The Central Bank of Jordan mandates licensed banks to automate the submission of Financial Soundness Indicators and Non-Performing Loan disclosures through the Office Supervision System (CBJOSS). Banks must report quarterly data for Jordan branches and consolidated statements, effective retroactively from March 2020, with specific instructions on data classification and provision calculations. The Central Bank has granted user access rights for data entry and requires full compliance with upload deadlines, warning of penalties under Banking Law No. 28 of 2000 for inaccuracies. Banks are also required to upload historical quarterly data for the periods ending March, June, and September 2020 within two weeks of the circular's date.
10/5/494 23/5/1442 AH 7/1/2021 AD Circular to Licensed Banks Greetings,
Please be informed that the automation of Financial Soundness Indicators (Jordan branches and consolidated financial statements) and the disclosure of Non-Performing Loans, Suspended Interest, and Provisions will be launched through the Office Supervision System (CBJOSS). This will be achieved by providing screens on the system through which all banks will provide us with Financial Soundness Indicators at the level of Jordan branches and consolidated financial statements according to the data provided on those screens. This will be done on a quarterly basis, retroactively, and effective from the March 2020 data.
Please note that access rights to the Financial Soundness Indicators screen have been granted to the relevant users (USERS) at your bank for entering aggregate data into the Office Supervision System for the Banking Sector.
Referring to the following:
First: Full compliance with the deadlines for uploading the aforementioned data to the Office Supervision System and within the specified deadlines, varying by their cycles, in accordance with the requirements of our Circular No. (10/2/14576) dated 9/11/2016.
Second: Giving utmost importance to the correctness and accuracy of the data provided to the Central Bank, under the threat of imposing any of the penalties stipulated in paragraph (b) of Article (88) of Banking Law No. (28) of 2000 and its amendments.
Third: The following shall be taken into consideration when entering the required data:
- Non-Performing Loans, Watch List Loans, Suspended Interest, and Provisions for each shall be listed in the column of data approved by the Central Bank of Jordan, corresponding to the applied provision (the most severe) in accordance with Instructions (2009/47) or the requirements of Standard (9), so that these data are reflected in the Financial Soundness Indicators.
- The provision for "Non-Performing Facilities / Stage 3" and the provision for "Watch List Facilities / Stage 2" shall be listed, excluding any other provisions such as provisions for external investment risks, which are listed under other provisions.
- Direct Facilities Net is the total of Direct Facilities after excluding Suspended Interest and corresponding Provisions.
Fourth: Efforts will be made to upload Financial Soundness Indicators (Jordan branches and consolidated financial statements) and the disclosure of Non-Performing Loans, Suspended Interest, and Provisions for the period prior to the quarterly data (03/2020, 06/2020, 09/2020) within a maximum of two weeks from its date.
Please accept our highest respect,
Governor Dr. Ziad Faris