Regulatory Alerts2005-11-06
Added · Updated
Instructions of Money Penalties on Violations of Credit Concentrations and Foreign Currency Facilities
The Central Bank of Jordan imposes monetary penalties on banks violating credit concentration and foreign currency facility limits, including percentage-based fines on excess exposure amounts and lump-sum fines for specific breaches such as overdraft or real estate limits. The directive establishes a tiered penalty structure ranging from 2,500 to 40,000 JD based on the percentage of excess exposure and mandates that violations be seized monthly. Penalties are doubled if violations persist for three months, and regulatory capital is reduced if uncorrected after six months. These instructions became effective as of the December 2005 statements, replacing previous contradictory guidelines.
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