Regulatory Alerts2017-06-09
Added · Updated
Stress Testing Instructions for Banks Operating in Jordan No. 1/2016
The Central Bank of Jordan issues Stress Testing Instructions No. 1/2016 to replace Instruction No. 46/2009, mandating that banks operating in Jordan integrate stress testing into their risk governance and capital planning processes. The document requires banks to conduct sensitivity and scenario analyses, establish appropriate infrastructure, and define specific roles for boards of directors and senior management. It further authorizes the Central Bank to require remedial measures or impose restrictions on profit distributions if stress test results indicate capital or liquidity vulnerabilities. These instructions became effective on December 6, 2016.
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