Regulatory Alerts2026-07-14
Added · Updated
Responses to Banks' Inquiries Regarding Liquidity Coverage Ratio Instructions
The regulator maintains the cap on foreign currency Jordanian government bonds within Level 1 High-Quality Liquid Assets, aligning with Basel standards and Capital Adequacy Instructions No. 67/2016 which assign a 100% risk weight to these instruments. Foreign currency government-guaranteed debt instruments are excluded from the Liquidity Coverage Ratio numerator as they do not qualify as High-Quality Liquid Assets due to liquidity constraints during stress periods. The requirement for Treasury Departments to maintain continuous authority to liquidate assets within 30 days is upheld as a fundamental Basel criterion for HQLA classification.
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