Circular Regarding Legal Liquidity No. 6793/2/2/10 dated 2012/6/18

Licensed banks must exclude securities sold under repurchase agreements from the calculation of the legal liquidity ratio and instead include the corresponding liabilities under the 'Borrowed Funds' item, applying the weighting specified in the Legal Liquidity Instructions. This directive takes effect immediately upon its issuance date.

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

Central Bank of Jordan
CENTRAL BANK OF JORDAN

Number: 6793/2/2/10
Date: 28/7/1433 AH
Corresponding to: 18/7/2012 AD

Circular to Licensed Banks

Greetings,

Based on the provisions of Article (99/b) of Banking Law No. (28) of 2000 and its amendments, and subsequently to Legal Liquidity Instructions No. (2007/37) dated 2007/11/11, the following is decided:

First: Securities sold under repurchase agreements (agreements to sell securities with a commitment to repurchase them at later dates) shall not be included in the calculation of the legal liquidity ratio.

Second: The amounts of liabilities corresponding to the aforementioned repurchase agreements shall be included in the legal liquidity ratio under the "Borrowed Funds" item and weighted according to the provisions of the aforementioned Legal Liquidity Instructions.

The above shall be implemented as of its date.

Please accept our highest respect,

Governor
Dr. Ziad Friez

Website: www.cbj.gov.jo • E-mail: info@cbj.gov.jo • Fax: 4638889, 4639730, 4639731 • Phone: 01-3-463 • P.O. Box 37, Amman 11118, Jordan (11/7/2012) Authorization

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Lineage: In force

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Source: Central Bank of Jordan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works