Internal Branching Instructions for Licensed Banks

No. (2007/36)

Based on the provisions of Articles (17/b) and (99/b) of Banking Law No. (28) of 2000, the following are the principles of internal branching for licensed banks in the Kingdom:

First: Internal branching for licensed banks takes the following forms:

1. Branches or offices, including currency exchange offices.
2. Marketing sites for banking services and products.
3. Automated Teller Machines (ATMs).

1- Branches or Offices:

a- Every bank wishing to branch within the Kingdom must submit a written application to the Central Bank of Jordan, supported by the bank's Board of Directors' approval for the branching and an economic feasibility study for the branching, specifying the geographical area where it is located, with a statement of the expected date for the opening of each branch or office.

b- The following matters will be taken into consideration when studying applications for opening branches and offices:

1. The extent of the bank's compliance with the prevailing banking legislation, specifically the systems and instructions issued under the Banking Law.
2. That the financial, administrative, and regulatory status of the bank is generally sound, and consideration will be given to the extent of the existence of an integrated system for internal control and audit systems.

c- Meeting the above conditions for any bank is the basis for considering its application for branching and does not necessarily mean the Central Bank's automatic approval for branching. The Central Bank may request any other financial information or data, or provide any other conditions.

d- The bank that has obtained the Central Bank's approval to license any new branch or office must inform the Central Bank in writing two weeks before the date either begins operations, including information regarding them such as the manager's name, addresses, telephone, and fax numbers.

e- Every bank is committed to opening the approved branches or offices within a maximum period of one year from the date of the Central Bank of Jordan's Board of Directors' approval, and the approval is automatically cancelled thereafter. No application for an extension of the licensing period will be considered, unless it is proven that the delay in commencing work was due to justified circumstances. In this case, the Central Bank may extend the license for a maximum period of one year, provided that the bank submits the extension request at least two months before the expiration date of the first approval.

f- A branch or office that has obtained a license is not permitted to conduct banking business through more than one location.

g- The bank must obtain the prior approval of the Central Bank of Jordan before taking any of the following actions:

• Closing the branch or office temporarily or permanently, and the justifications for doing so.
• Relocating any branch or office from one place to another.

h- The bank may determine the banking business it wishes to conduct through the branch or office under its jurisdiction, provided that measures are taken to provide adequate internal control and audit systems.

i- The bank wishing to expand the banking business offered by the office must inform the Central Bank of this in advance to take the necessary measures regarding this matter.

j- The provisions of the Banking Licensing Fees System No. (21) of 2004, and any amendments that may occur to it in the future, apply to the branches and offices of banks operating within the Kingdom.

k- The bank must provide the Central Bank with a statistic showing the number of licensed branches and offices and their locations as of the end of each year, according to the attached forms, to be received by us no later than the middle of January of the beginning of each year.

2- Marketing Sites for Banking Services and Products:

a- The bank wishing to market its services and products through marketing sites (permanent or temporary) must inform the Central Bank of this, specifying the location, the date of commencing work at the site, and the date of stopping work there.

b- Advertise in a prominent place that the work is limited to marketing the bank's services and products, without conducting any of the banking business conducted by branches and offices.

c- The bank must provide the Central Bank at the end of each year with a statistic showing the number of these sites and their addresses.

Footer Text from Page 1:

P.O. Box 27 • Amman 11118 Jordan • Phone 4630301 • Telegram Banki / Amman • Fax 4638889, 4639730, 4613308

Footer Text from Pages 2 and 3:

CENTRAL BANK OF JORDAN
البنك المركزي الأردني
Form (1/1/09)

# CENTRAL BANK OF JORDAN
البنك المركزي الأردني

## 3- Automated Teller Machines (ATMs):

Every bank wishing to install an ATM must inform the Central Bank of the location where the machine is to be installed, and the following must be observed:

- a- Suitable security conditions and surveillance cameras must be provided for all machines belonging to the bank.
- b- Ensure the validity of the bank's ATMs, and work to repair any technical faults if they occur.
- c- Provide the Central Bank at the end of each year with a statistic showing the number of ATMs, their locations, and the services they provide.

### Second: These instructions apply from the date of issuance, and the following instructions are repealed:

1. No. (13311/2/10) dated 26/12/2005
2. No. (10822/2/10) dated 6/10/2005
3. No. (68/7020) dated 2/1/1996
4. No. (29785/7020) dated 18/12/1994
5. No. (19838/7020) dated 16/8/1993
6. No. (20541/7020) dated 3/10/1992

Governor
Dr. Amneh Touqan

Attachments: Forms (2)

Form (1)
Local Branches and Offices of Bank ..................
As of 31-12-200

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