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FAQ

Is the Risk Management Department responsible for managing the risks of licensed banks?

Risk Management department is responsible of Establishing and Implementing a comprehensive risk management framework that provides the necessary foundations and organizational arrangements for managing risk across the Central Bank of Jordan (CBJ) including key tools for identifying, measuring, monitoring and controlling the CBJ's overall risks.

Executive Manager: Adnan Naji

Risk Management and Compliance Department establishes, implements, and reviews the comprehensive risk management framework that includes identifying, assessing, monitoring, managing, and controlling risks continuously to ensure the sustainable achievement of CBJ's objectives effectively and efficiently. The department performs the following tasks in particular:

  • Drafting, developing, and reviewing CBJ's risk management strategy, methodology and policies to be endorsed by the relevant stakeholders at the bank.
  • Drafting, developing, and reviewing the comprehensive risk management framework at both the Enterprise level (Enterprise Risk Management (ERM)) and Units level to aid the units and ensure they manage their risks consistently and harmoniously, thus optimally achieving CBJ's objectives.  
  • Developing the oversight system to include aiding the organizational units in reporting their risk monitoring reports periodically to the Governor.
  • Contributing to studying and assessing the risks of developed operations or those that will be reorganized in CBJ. It also expresses its views regarding these operations in coordination with the concerned parties.
  • Cooperating and coordinating with the relevant parties regarding training and awareness in order to build and develop the awareness level of risk management and compliance at CBJ.
  • Cooperating and coordinating with external relevant parties in order to exchange experiences and knowledge in the area of risk management and compliance.
  • Preparing the necessary studies and researches in risk management and compliance and providing the required recommendations relating thereto.
  • Reporting periodically to the risk management committees to demonstrate the various risks facing the CBJ and their impact on the overall performance of the CBJ in achieving its objectives. It also makes the necessary recommendations regarding these risks.
  • Monitoring the compliance of CBJ with all laws, regulations and instructions related to its business, rules of conduct, standards and sound banking practices, and monitoring the compliance of CBJ units with that.
  • Developing a comprehensive framework for the acceptable level of risks (Risk appetite) to which the bank is facing and the permissible limits, all that in coordination with the relevant organizational units in CBJ, in addition to monitoring compliance of this framework implementation, and submitting reports to the relevant parties in this regard.
  • Developing an integrated business continuity management policy that includes the primary axes of business continuity management represented by setting and reviewing the policy and instructions of business continuity management in addition to following up business continuity plans in terms of; implementation, screening, improvement, and development, and awareness and training.
  • Develop, review and update policies and methodologies for managing Information and Business Technology risks in CBJ.

 

E-mail:  RISKMGMT@cbj.gov.jo



Can banks reject providing their clients with their accounts details whether credit/ debit?

Pursuant to the provisions of Article (44/B) of Banking Law, banks are committed to provide their clients with any notifications, data, or statements related to their accounts with banks.



Does the Central Bank interfere in the relationship between the bank and its borrowing client?

The granting of credit facility and its follow-up is considered a contractual relationship between the bank and its client. The Central Bank’s intervention is restricted to cases where violations of law and valid instructions are made by the bank.



Can I request information on the formation of the banking system (the number of banks and their branches) and their types as well as the most important indicators of banking activities?

Such information may be obtained through the Central Bank’s website. By calling the Banking Supervision Department, anyone may be provided with overall information of banks.



What are the conditions and requirements of licensing a new bank in the kingdom?

The Central Bank has recently issued guidelines for licensing banks which can be obtained from the Central Bank in addition to the requirements mentioned in the Banking Law.



What is the extent of legitimacy of some commissions charged by banks on their banking services?

The banks are allowed to determine the services for which they charge commissions and their prices (commissions).



What is the interest rate on deposits and credit facilities of licensed banks operating in the kingdom?

The interest rates on deposits and credit facilities are floated since the early nineties and banks are allowed to determine the rates depending on the supply and demand factors as well as the competitiveness of the domestic market. 



Why did the Central Bank place my name on the bounced Cheques list?

The placing of any client’s name on the bounced Cheques list is done by the licensed bank which the client deals with in congruence with instructions. The Central Bank’s role is restricted in this regard to collecting information in its database.



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