Regulatory Alerts2020-05-05
Added · Updated
Circular on Stress Testing and Sensitivity Analysis for Banks in Jordan
The Central Bank of Jordan mandates that banks operating in the Kingdom conduct sensitivity and scenario analyses based on December 31, 2019 data, applying sensitivity tests at both branch and consolidated levels while restricting scenario tests to the branch level. Banks are required to submit the completed results using the attached templates by the end of May 2020. This directive implements instructions from Circular No. (2016/1) and establishes an annual cycle for such risk assessments.
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