Regulatory Alerts2018-01-31
Added · Updated
Circular on Stress Testing Requirements for Banks in Jordan Based on 2017 Year-End Data
The Central Bank of Jordan requires banks operating in the Kingdom to perform sensitivity and scenario stress tests on data as of December 31, 2017. Banks must submit results using attached forms no later than the end of March 2018, applying sensitivity tests at both branch and consolidated levels, while scenario tests apply only to branches. The directive mandates specific shocks for credit, market, liquidity, and operational risks, including defined percentage increases in non-performing loans, exchange rate fluctuations, and interest rate changes, alongside macroeconomic scenarios for medium and severe stress conditions.
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