Jordanian banks witness increases in assets

Central Bank of Jordan CBJ
Central Bank of Jordan. (File photo: Jordan News)
AMMAN— The assets of operating banks in Jordan experienced a noteworthy surge, reaching JD64.251 billion by the end of April, according to data from the Central Bank. This represents a growth rate of 0.2 percent compared to the previous year.اضافة اعلان

In parallel, the banking sector witnessed a rise in total deposits within the Jordanian market, reaching JD42.362 billion by the end of April, Hala News reported. The total amount of deposits exhibited a 0.6 percent increase compared to the previous period.

Additionally, credit facilities provided by banks in the country amounted to JD33.376 billion, showcasing a growth rate of 2.4 percent in comparison to the previous year.

Data from the Jordanian Banks Association revealed that the sector's total assets, measured as a percentage of the gross domestic product, reached an impressive 190.7 percent.

Total deposits relative to GDP
Moreover, the total deposits in banks relative to the gross domestic product stood at 125.7 percent, emphasizing the sector's substantial contribution to the national economy.

Foreign assets within the banking landscape experienced significant growth, surging by JD417.4 million, equivalent to a 7.1 percent increase compared to the previous year. However, domestic assets witnessed a slight decrease of JD310.9 million, indicating a decline of 0.5 percent.

Economic sectors
Jordanian banks played a pivotal role in supporting various sectors of the economy through the provision of economic credit facilities. Notably, the individual and "other" sectors dominated the share, accounting for 24.7 percent of the total facilities provided, with an overall value of JD8,229.4 million.

Following closely, the construction sector received credit facilities totaling JD8,216.3 million, while the services and public utilities sector obtained facilities amounting to JD5,482.5 million.

The financial resilience indicators which measure banks' ability to withstand financial shocks, exceeded the Central Bank's minimum requirement. By the end of 2022, the capital adequacy ratio for Jordanian banks reached 17.3 percent, significantly surpassing the mandatory threshold of 12 percent.

Additionally, the legal liquidity ratio, reflecting the availability of liquid assets to cover short-term obligations, stood impressively at 138 percent, exceeding the minimum requirement of 100 percent.

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