Regulatory Alerts2025-05-05
Added · Updated
Climate Risk Management Regulations No. 2 of 2025
The Central Bank of Jordan issued these regulations to require all banks operating in the Kingdom to integrate climate-related financial risks into their corporate governance, business strategies, and risk management frameworks. The rules mandate that Boards of Directors adopt annual policies for identifying and managing these risks, while Senior Executive Management must implement robust frameworks and ensure staff capacity building. Domestic Systemically Important Banks are specifically required to establish dedicated climate risk units within their Risk Management Departments. Banks must submit their governance structures and amended risk management strategies to the Central Bank within six months of the regulations' issuance on February 18, 2025.