Regulatory Alerts2021-04-06
Added · Updated
Instructions on Banks' Ownership of Shares and Equity Stakes in Companies' Capital No. (5/2021)
Issued by the Central Bank of Jordan, these instructions prohibit banks from owning non-financial subsidiaries and restrict direct or indirect share ownership in non-deposit-taking companies to 10%, with a potential 20% limit for specific supporting activities. The regulations cap total bank investments in company capital at 50% of subscribed capital, require prior Central Bank approval for establishing subsidiaries or increasing capital, and mandate the disposal of debt-settlement shares within two years. Banks must notify the Central Bank of any ownership stake of 5% or more within fifteen days and submit quarterly reporting statements starting from the first quarter of 2021.
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