Regulatory Alerts2024-06-30
Added · Updated
Instructions for Classifying Credit Exposures and Calculating Impairment Provisions Against Them No. (8/2024)
The Central Bank of Jordan issued Instructions No. (8/2024), effective January 1, 2025, mandating that all banks operating in Jordan classify credit exposures into risk-acceptable, watch list, and non-performing categories based on specific overdue days and financial deterioration criteria. The document establishes detailed rules for restructuring and rescheduling exposures, including probationary periods of 12, 6, or 3 months and payment thresholds required to reclassify assets to better categories. It further requires banks to calculate impairment provisions for non-performing exposures not covered by eligible guarantees, with provisions for substandard, doubtful, and loss categories defined by the duration of non-payment.