Regulatory Alerts2021-06-06
Added · Updated
Instructions on Banks' Ownership of Shares and Equity Stakes in Companies' Capital No. (5/2021)
The Central Bank of Jordan prohibits banks from owning non-financial subsidiaries and restricts direct or indirect ownership of shares in other banks or deposit-taking companies to a maximum of 10% of the lower of the bank's or the company's subscribed capital without prior written approval. The regulations cap total bank ownership in all companies at 50% of its subscribed capital, require prior approval for establishing insurance subsidiaries, and mandate the disposal of debt-satisfied shares within two years. Banks must submit quarterly reports on these investments starting from the first quarter of 2021, and previous circulars and instructions on this matter are repealed.
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