Regulatory Alerts2026-07-12
Added · Updated
Tools for Providing Liquidity to Islamic Banks from the Central Bank
The Central Bank of Jordan issues Circular 3/2024 to establish intraday liquidity via Qard Hasan loans against pledged government Sukuk and overnight-to-one-week liquidity through Unrestricted Investment Wakalah agreements. Islamic banks must open designated accounts, pledge eligible Sukuk, and adhere to specific balance sheet reporting and legal liquidity ratio calculations, including a 100% weight for pledged Sukuk in the numerator and specific weights for borrowings in the denominator. The circular mandates exclusion of these pledged assets from the Liquidity Coverage Ratio numerator and cancels conflicting prior instructions effective 20 February 2024.
Topics
islamic-finance
capital
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