Regulatory Alerts2019-03-04
Added · Updated
Instructions of Large Exposures Limits and Credit Granting Controls No. (2/2019)
The Central Bank of Jordan issued Instructions No. (2/2019) effective June 30, 2019, establishing large exposure limits and credit granting controls for all banks operating in the Kingdom. The regulations cap total exposure to a single person or connected group at 25% of the capital base and limit exposure to main shareholders at 10%, while prohibiting overdrafts against cash collaterals and restricting real estate credit to 20% of deposits. Banks must submit monthly large exposure data to the Central Bank by the 15th of the following month and provide rectification timetables for any violations existing at the enforcement date.
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