Amman, October 13 (Petra) – The Central Bank of Jordan (CBJ) issued its 2024 Financial Stability Report, providing a comprehensive assessment of the Kingdom’s financial sector and macroeconomic situation, along with an analysis of potential risks and opportunities that may affect the stability of the financial system.

The report stated that the national economy demonstrated resilience and a strong capacity to maintain macroeconomic stability despite regional geopolitical instability resulting from the prolonged war on the Gaza Strip. It added that monetary and financial stability in the Kingdom remained robust, supported by the Central Bank’s prudent monetary and supervisory policies.

Financial stability, the report noted, seeks to enhance the ability of banks and financial institutions to address potential risks and mitigate structural imbalances that could impact the performance of the financial system.

The report highlighted that Jordan’s banking sector maintains a high level of stability, with notable improvement across most financial ratios and indicators. The sector’s capital adequacy ratio reached 18 percent at the end of 2024 and last June, up from 17.9 percent at the end of 2023, surpassing the minimum required level of 12 percent. The sector also continues to enjoy secure liquidity levels exceeding regulatory requirements.

According to the report, non-performing loans stood at 5.8 percent at the end of last June, with 71.3 percent covered by provisions. Stress test results showed that the banking sector remains capable of withstanding shocks and high risks, supported by strong capital buffers and adequate liquidity and profitability levels.

The Central Bank continues to implement its Green Finance Strategy (2023–2028), launched in 2023 as the first of its kind in the Middle East and North Africa region. The strategy serves as a roadmap to strengthen green finance practices and address climate-related risks across the banking and financial sectors.
The Bank also issued the first climate risk management instructions for banks operating in the Kingdom, aimed at enhancing and activating climate risk governance within the sector.

Additionally, the second Financial Inclusion Strategy (2023–2028), launched by the Central Bank in March 2024, focuses on promoting responsible and sustainable access to financial products and services for all societal segments. This effort aligns with the objectives of the Economic Modernization Vision and broader socioeconomic development goals.

The Bank underlined its commitment to reviewing and updating the legislative framework to ensure alignment with global best practices in supporting monetary and financial stability.

//Petra// AJ

13/10/2025 16:05:15