CBJ to license, supervise all financing entities

(File photo: Jordan News)
AMMAN — All companies engaging in financing activities will now be licensed by the Central Bank of Jordan (CBJ), which will also control and supervise their performance, according to Al-Mamlaka TV. Finance Companies Regulation No. 107 of 2021 came into force on 30 May 2022.اضافة اعلان

The Central Bank had subjected microfinance companies to its control and supervision under the Microfinance Companies Regulation issued in 2015 while amending its own law in 2016 by expanding the scope of its objectives to include control and supervision of financial institutions that practice various activities stipulated in the Banks’ Law, including financing.

With the Finance Companies Regulation coming into effect, the Microfinance Companies Regulation No. 5 of 2015 will be abolished, which means that microfinance companies that were licensed by the Central Bank before the provisions of the new regulation came into force are considered licensed according to it, provided that they adjust their status in accordance with the provisions of the new regulation within a year.

As for existing finance companies, the new regulation has given them time to adjust their status in line with its provisions within two years from the date of its entry into force.

The new regulation has prohibited any person from engaging in financing activities without a license from the Central Bank.

Read more Business
Jordan News