The Central Bank of Jordan confirmed that the results of stress tests conducted on the banking sector demonstrated Jordanian banks’ ability to withstand shocks and high risks, thanks to their comfortable levels of capital, liquidity, and profitability.
اضافة اعلان
According to the 2024 Annual Financial Stability Report, the tests showed that the capital adequacy ratio of the banking sector remains high even under the most severe scenarios, ranging between 14.6% and 16.5% for the years 2025–2027. This exceeds both Jordan’s minimum requirement of 12% and the Basel Committee standard of 10.5%.
The report indicated that this performance reflects the financial resilience of Jordanian banks and their ability to continue providing financing while maintaining financial stability amid ongoing geopolitical and economic challenges.
In the same context, Jordan’s Financial Stability Index showed continued improvement, rising from 0.50 in 2020 to 0.57 at the end of 2023, indicating a high degree of stability in the banking sector despite difficult regional and international conditions.
The report highlighted that Jordan ranked first in financial stability among 23 countries that developed the index using the same methodology applied by the Central Bank of Jordan. It confirmed that the local banking system is highly resilient and capable of continuously adapting to economic and geopolitical developments.
The Central Bank emphasized that this performance strengthens the resilience of Jordan’s financial system and places Jordan among the top 23 countries in terms of financial stability according to internationally recognized methodologies used in constructing the index.
— (Al-Mamlaka)
