Regulatory Alerts2022-03-30
Added · Updated
Instructions for Banks’ Owning of Stocks and Capital Shares in Companies No. (5/2021)
The Central Bank of Jordan issues Instructions No. (5/2021) prohibiting banks from owning non-financial subsidiaries and restricting equity stakes in non-financial companies to 10%, with a potential increase to 20% for supportive activities. The regulation mandates Central Bank written consent for establishing subsidiaries, owning shares in deposit-taking entities, and acquiring insurance companies, while capping total stock ownership at 50% of subscribed capital. Banks must report holdings of 5% or more within fifteen days and submit quarterly statements via the off-site supervision system. These instructions repeal previous circulars and take effect immediately upon issuance.
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