Regulatory Alerts2019-03-04
Added · Updated
Instructions on Large Exposure Limits and Credit Granting Controls No. (2/2019)
The Central Bank of Jordan issued Instructions No. (2/2019) effective June 30, 2019, replacing Credit Limits Instructions No. (9/2001) and setting new exposure limits for all banks operating in the Kingdom. The rules cap total exposure to a single person at 25% of capital, limit exposure to principal shareholders at 10%, and restrict real estate construction credit to 20% of customer deposits. Additionally, overdraft limits are capped at 20% of direct credit, and monthly reporting of large exposures is mandated using forms to be provided by the regulator.
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