In its 2018 Financial Stability Report, the Central Bank of Jordan (CBJ) revealed the continued high level of financial stability in the Kingdom, where Jordan has a sound and robust banking sector that is generally able to withstand shocks and high economic and monetary risks.
According to the CBE report, banks in Jordan enjoy healthy and sound financial indicators. The average capital adequacy ratio of banks operating in the Kingdom was 17 percent, compared with 12 percent as per CBE requirements and 10.5 percent as required by the Basel Committee.
The ratio of non-performing debt to total debt stood at 4.9 percent while the provisions for non-performing debt stood at 79.3 percent in 2018, up from 75.4 percent in 2017.
The report showed that the capital adequacy ratio for the banking sector in Jordan, assuming a scenario that worsens the political and economic conditions surrounding the Kingdom, will reach 16.5 percent, 7.15 percent and 8.14 percent for 2019, 2020 and 2021 respectively.
Source (Al-Dustour Newspaper-Jordan, Edited)
