Regulatory Alerts2006-12-06
Added · Updated
Instructions for Managing Banks’ Assets/Liabilities in Foreign Currencies No. 32/2006
The Central Bank of Jordan issued Instructions No. 32/2006 requiring licensed banks operating in the Kingdom to adopt a prudent investment policy for foreign currency assets and liabilities, approved by their boards of directors. The regulation mandates specific concentration limits, including a maximum of 10% for equity and alternative investments, and restricts open foreign currency positions to 5% of shareholders' equity per currency and 15% in total. Banks must maintain independent risk management and back-office functions, submit monthly detailed reports, and refrain from investing in countries with capital transfer restrictions.
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capital
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