Regulatory Alerts2026-07-14
Added · Updated
Instructions on Classification of Credit Exposures and Calculation of Impairment Allowances
The Central Bank of Jordan issues these instructions to all banks operating in the Kingdom, requiring the classification of credit exposures into Performing, Under Review, and Non-Performing categories based on specific delinquency thresholds and financial indicators. The document mandates impairment allowance calculations for Non-Performing exposures, specifying gradual provisioning rates of 25%, 50%, or 100% depending on whether the exposure is Sub-standard, Doubtful, or Loss. It establishes strict conditions for transferring restructured or rescheduled exposures between categories, including mandatory testing periods of 3, 6, or 12 months and minimum repayment percentages. Additionally, the rules limit grace periods to 18 months for restructuring and 12 months for rescheduling, and prohibit granting new credit to customers with Non-Performing exposures.