Regulatory Alerts2008-04-30
Added · Updated
Instructions to Islamic Banks on Legal Liquidity No. 40/2008
The Central Bank of Jordan mandates that Islamic banks maintain a legal liquidity ratio of at least 100% of total weighted liabilities, with a minimum of 70% in Jordanian dinars. This directive establishes specific weighting factors for liquid assets and liabilities, including International Murabaha and Islamic Sukuk, while excluding company stock subscription proceeds from the calculation. The ratio must be calculated daily and reported weekly, with daily reporting required if the minimum threshold is breached. These instructions, effective immediately, cancel the previous Instructions on Legal Liquidity No. 37/2007.
Topics
capital
islamic-finance
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