Regulatory Alerts2017-06-09
Added · Updated
Instructions on Legal Liquidity no (37/2007)
The Central Bank of Jordan mandates that banks maintain liquid assets equal to at least 100% of weighted liabilities and 70% of weighted Jordanian Dinar liabilities. The regulation defines the numerator as specific liquid assets and the denominator as weighted liabilities, including customer deposits and borrowed amounts with specified maturity-based weights. Banks must calculate this ratio daily, submit it weekly, and report daily if the minimum threshold is breached, with the margin for non-compliance set at an annual rate of 3%. These instructions replace previous liquidity directives and became effective on January 1, 2008.
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