Regulatory Alerts2023-03-16
Added · Updated
Regulation No. (12/4b/56) on Microfinance Companies in Jordan
The Minister of Finance issued Regulation No. (12/4b/56) to govern licensed microfinance companies under the oversight of the Central Bank of Jordan. The regulation mandates that companies maintain reserves of 10% to 15% of their loan portfolios or total assets, depending on their licensed activities and regulatory directives. It further requires companies to adhere to specific capital adequacy ratios and loan portfolio limits based on their capital size, while prohibiting fund transfers without prior written approval from the Regulator.