Circular to Licensed Banks Regarding Regulatory Capital Limits under Basel III

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

[Logo of the Central Bank of Jordan]

Number: 773 / 10 / 1
Date: 1 / 6 / 1443 AH
Corresponding to: 13 / 1 / 2022 AD

Circular to Licensed Banks

Greetings,

With reference to Article (Second/2,3) and Article (Second/3,3/3) of the Regulatory Capital Instructions under Basel III Standard No. (67/2016) dated 31/10/2016, which relate to the maximum limits for Additional Capital (AT1) and Tier 2 (T2), it has been decided to allow banks to exceed the ratios specified in the aforementioned articles. This allows the total upper limit that can be utilized within either of the aforementioned tiers (or both together) to not exceed 6% of assets weighted for credit, market, and operational risks at all times, provided that prior approval from the Central Bank is obtained.

Please accept our highest respect,

Governor
Dr. Adel Al-Sharkas

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Form (1/1-1443)
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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