Regulatory Alerts2023-11-15
Added · Updated
Instructions on Financial Soundness Indicators and Their Limits for Exchange Companies No. (3/2023)
The Central Bank of Jordan issues Instructions No. (3/2023) establishing mandatory financial soundness limits for exchange companies, effective November 15, 2023. The regulation requires companies to maintain a liquidity ratio of at least 65%, limit fixed assets to 20% of paid-up capital, cap total assets at five times paid-up capital, and restrict single-party exposure to 40% of paid-up capital. Additionally, companies must settle annual losses within two weeks, provision debts over 60 days old at 100%, and submit monthly compliance schedules to the Bank by the tenth day of the following month.
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