Regulatory Alerts2022-03-24
Added · Updated
Framework for Corrective Actions by the Central Bank of Jordan
The Central Bank of Jordan mandates corrective actions for licensed banks violating the Banking Law, engaging in unsound operations, or failing CAMEL/ROCA ratings. For solvency breaches, banks are classified into five capital adequacy categories with specific thresholds, such as a 14% minimum for well-capitalized status. Undercapitalized banks must submit capital restoration plans within 45 days, while critically undercapitalized institutions face license revocation or merger within 270 days. The framework also authorizes monetary penalties, activity suspensions, and the removal of directors and executives.
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