Circular on Stress Testing and Sensitivity Analysis for Banks in Jordan

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

Ref: 2/23/591
Date: 14/9/1441 AH
Corresponding to: 5/5/2020 AD

Circular to Banks Operating in the Kingdom

Greetings,

Based on the Instructions for Stress Testing of Banks Operating in Jordan No. (2016/1) dated (2016/12/06), please find attached the sensitivity analysis tests and scenario tests that banks must conduct based on data as of 2019/12/31. Sensitivity tests and Coronavirus impact tests shall be applied at the level of the bank's branches in Jordan and at the level of consolidated financial statements, whereas scenario tests shall be applied at the level of the bank's branches in Jordan only. The results of the required tests must be submitted to us, completed according to the attached templates, no later than the end of May 2020. The Central Bank will continue to provide banks with the required tests annually, taking into account risk developments at the local, regional, and international levels.

Please accept our highest regards.

Governor
Dr. Ziad Fries

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P.O. Box 37, Amman 11118, Jordan • Phone: 4630301 • Fax: 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo

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