Regulatory Alerts2022-01-16
Added · Updated
Circular to Licensed Banks Regarding Regulatory Capital Limits under Basel III
The Central Bank of Jordan authorizes licensed banks to exceed the Additional Capital (AT1) and Tier 2 (T2) limits specified in Basel III Standard No. 67/2016, provided prior approval is obtained. This directive permits the total upper limit utilized within these tiers to reach 6% of assets weighted for credit, market, and operational risks. The measure applies to all licensed banks subject to the Central Bank of Jordan's regulatory oversight.
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