Regulatory Alerts2025-11-19
Added · Updated
Responses to Observations and Inquiries from Islamic Banks Regarding Instructions on the Legal Liquidity Ratio for Islamic Banks
The Central Bank of Jordan amended the instructions on the legal liquidity ratio for Islamic banks, primarily by reducing the weighting of joint investment accounts to 20% and renaming them 'Quasi-Equity'. The regulator confirmed that exceptions for government-guaranteed Sukuk and specific military financing remain in the liquidity numerator until maturity, ensuring the ratio does not drop retroactively. Additionally, the Central Bank clarified that international Murabaha and currency swaps in Jordanian Dinar remain prohibited, requiring adherence to Circular No. 1686/1/10.
Topics
islamic-finance
capital
Share