Instructions on the Ratio of Jordanian Dinar Deployments to Jordanian Dinar Funding Sources No. (38-2008) dated 17-3-2008

In the Name of Allah, the Most Gracious, the Most Merciful

Number: 10/2/2992
Date: 29/3/1429 AH
Corresponding Date: 17/3/2008 AD

Instructions on the Ratio of Jordanian Dinar Deployments to Jordanian Dinar Funding Sources No. (8/2008) Issued by the Central Bank of Jordan pursuant to the provisions of Article (99/B) of the Banks Law

With regard to the Central Bank's keenness to preserve the safety and robustness of the banking system and to enhance the role of asset and liability management in banks in Jordanian Dinar, the following is approved:

First: Every bank shall calculate the ratio of its Jordanian Dinar deployments to its Jordanian Dinar funding sources, as follows:

(A) The Numerator: Consists of the sum of the following items in Jordanian Dinar:

1. Net Direct Credit Facilities: Representing, for the purpose of calculating this ratio, total direct credit facilities minus the following:
   • Direct credit facilities granted to finance share subscriptions.
   • Provisions for impairment of direct credit facilities.
   • Suspended interest and returns.
   • Cash collateral on direct credit facilities, and the maximum balance of facilities granted against their collateral.
2. Financial Assets Individually Held for Sale (calculated at purchase cost and excluding Jordanian Treasury bills and development bonds).

P.O. Box 37 • Amman 11118 Jordan • Tel: 4630301 • Fax: 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo

Central Bank of Jordan
Banking Supervision Department
Ratio of Jordanian Dinar Deployments to Jordanian Dinar Funding Sources

Bank Name:
Date:

Numerator: Jordanian Dinar Deployments
Net Direct Credit Facilities =
Total Direct Credit Facilities minus the following:
Direct Credit Facilities granted to finance share subscriptions
Direct Credit Facilities refinanced from the Jordanian Company for Refinancing Mortgages
Provisions for impairment of Direct Credit Facilities
Suspended Interest and Commissions
Collateral pledged on Direct Credit Facilities and the maximum balance of facilities granted against their collateral
Net Financial Assets Available for Sale* =
Financial Assets Available for Sale* minus
Jordanian Treasury bills and development bonds*
Securities sold with an agreement to repurchase at a later date (Repurchase Agreements)
Net Financial Assets Held to Maturity* =
Financial Assets Held to Maturity* minus the following:
Provisions for impairment of Financial Assets Held to Maturity
Jordanian Treasury bills and development bonds*
Securities sold with an agreement to repurchase at a later date (Repurchase Agreements)
Investments in Affiliated Companies*
Investments in Subsidiary Companies*
Denominator: Jordanian Dinar Funding Sources
Net Customer Deposits =
Customer Deposits minus
The required cash reserve in Dinar for the month to which the data of this ratio pertains
Free Capital Shares =
Shareholders' Equity minus the following:
50% of the accumulated change in fair value, deducted in full if negative
Net Fixed Assets
Period Losses (note that period profits are not taken into consideration)
Any items subject to restrictions
Deposits from Banks and other Banking Institutions with an original maturity period exceeding one year.
Deposits from Banks and other Banking Institutions resulting from swap transactions (SWAPS)
Debt Securities
Subordinated Debts
Borrowed Funds, minus:
a. Amounts of liabilities corresponding to repurchase agreements for any securities included in the components of the numerator of this ratio.
b. Amounts borrowed from the Jordanian Company for Refinancing Mortgages.

• Calculated at purchase cost.
  The upper limit of the above ratio is (100%).

HA:166-2008
Form (1/1/09)