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2023-03-16

Added 2026-07-14 · Updated 2026-08-16

Regulation No. (12/4b/56) on Microfinance Companies in Jordan

The Central Bank of Jordan amends the maximum limits for capital and liquidity ratios applicable to microfinance companies, establishing tiered thresholds based on authorized capital and asset sizes. The regulation introduces specific maximum limits for various activities and services, including capital requirements ranging from 1,000 to 10,000 Jordanian Dinars and liquidity ratios between 1% and 2%. It also sets maximum fines for regulatory violations, such as 1,000 Dinars for unauthorized activities and 2,000 Dinars for false statements, while prohibiting the acceptance of deposits from the public without a banking license.

Source: Central Bank of Jordan — original document

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Jordan

Central Bank of Jordan

1421 Official Gazette Regulation No. (12/4b/56) of the Microfinance Companies in Jordan

Regulation No. (32) of 1791 and amending Regulation No. (19b) of the Microfinance Companies Regulation No. (129) of 3231

Article (0):

The following is hereby amended: "Regulation No. (2122) - The Banking Regulation for Microfinance Institutions", and the limits of microfinance institutions are amended as follows:

Article (1):

The following definitions are added to the Banking Regulation for Microfinance Institutions:

First: The First Definition: The Authorized Capital. Second: The Second Definition: The Authorized Capital. Third: The Third Definition: The Authorized Capital of the Central Bank of Jordan and the authorized capital of the Central Bank of Jordan. Fourth: The Fourth Definition: The Regulators and the Supervisors / or the General Manager of the Central Bank of Jordan and the General Manager of the Central Bank of Jordan, with the approval of the Board of Directors / the Board of Directors.

Article (2):

a. The General Manager of the Central Bank of Jordan, who is the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan, shall not be allowed to accept deposits from the public or the Authorized Capital of the Central Bank of Jordan, unless it is in the form of a deposit (subject to approval) for a period of not less than one year. b. The Authorized Capital shall be in the form of a deposit for a period of not less than one year, unless it is approved by the Board of Directors of the Central Bank of Jordan.

Article (4):

a. The Authorized Capital shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan, unless it is approved by the Board of Directors of the Central Bank of Jordan.

If the Authorized Capital is less than 1,000 Dinars:

In the case of the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan: The Authorized Capital of the Central Bank of Jordan shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan.
In the case of the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan: The Authorized Capital of the Central Bank of Jordan shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan.

If the Authorized Capital is more than 1,000 Dinars: The Authorized Capital of the Central Bank of Jordan shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan. b. In the case of the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan, the Authorized Capital of the Central Bank of Jordan shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan.
The Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan.
The Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan.

Article (1):

The Authorized Capital of the Central Bank of Jordan shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan, unless it is approved by the Board of Directors of the Central Bank of Jordan.

Article (1):

Article (7):

a. The Authorized Capital of the Central Bank of Jordan shall be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan, unless it is approved by the Board of Directors of the Central Bank of Jordan. b. The Authorized Capital of the Central Bank of Jordan shall not be returned to the Authorized Capital of the Central Bank of Jordan and the Authorized Capital of the Central Bank of Jordan, unless it is approved by the Board of Directors of the Central Bank of Jordan.

Article (1):

The Central Bank of Jordan Dr. Adnan Shurooq

1422 Official Gazette

1423 Official Gazette

1424 Official Gazette

Appendix Maximum Limits for Capital and Liquidity Ratios for Microfinance Companies

The General Manager of the Central Bank of Jordan

Capital Adequacy Ratio (CAR) (Basel I and II):

0% of CAR: If the CAR is less than 1,000 Dinars
0% of CAR + 1,000 Dinars: If the CAR is between 1,000 - 10,000 Dinars
0% of CAR + 2,000 Dinars: If the CAR is more than 10,000 Dinars

Capital in the Activities:

1,200 Dinars: If the Capital is less than 10 Dinars
1,100 Dinars: If the Capital is between 10 - 200 Dinars
0 Dinars: If the Capital is more than 200 - 400 Dinars
2 Dinars: The Capital of the Central Bank of Jordan is 400 Dinars

Authorized Capital of the Central Bank of Jordan:

2,100 Dinars: If the Capital is less than 10 Dinars
1,000 Dinars: If the Capital is less than 10 Dinars
0 Dinars: If the Capital is more than 10 Dinars
1,000 Dinars: If the Capital is more than 10 Dinars

Capital of the Central Bank of Jordan:

The Authorized Capital of the Central Bank of Jordan is 2 Dinars (2 Dinars as Capital)
The Authorized Capital of the Central Bank of Jordan is more than 2 Dinars
The Authorized Capital of the Central Bank of Jordan is less than 2 Dinars
The Authorized Capital of the Central Bank of Jordan is 2 Dinars

Liquidity Ratio:

2%: Of the Capital of the Central Bank of Jordan
1%: Of the Capital of the Central Bank of Jordan

Maximum Fine for Unauthorized Activities: 1,000 Dinars Maximum Fine for False Statements: 1,000 Dinars Maximum Fine for Unauthorized Deposits: 1,000 Dinars Maximum Fine for Unauthorized Deposits: 1,000 Dinars + Liquidity Ratio Maximum Fine for Unauthorized Deposits: 1,000 Dinars Maximum Fine for Unauthorized Deposits: 2,000 Dinars Maximum Fine for Unauthorized Deposits: 1,000 Dinars Maximum Fine for Unauthorized Deposits: 0 Dinars Maximum Fine for Unauthorized Deposits: 1,000 Dinars