Interview:Ziad Fariz How will the new banking law currently being reviewed by Parliament impact the banking sector? ZIAD FARIZ: The amendment to the Banking Law provides more room for the industry’s development, rather than changes to its structure. The new framework will be clear and transparent, and we are hoping that it will reinforce the banks’ resilience to external shocks. We are…
Interview:Nemeh Sabbagh How would you assess the current compliance environment in the kingdom, and how is this a positive force for business development? NEMEH SABBAGH: In an environment of evolving regulatory developments and increased complexity, banks in Jordan continue to be fully committed to compliance, which is a hallmark for a sound and stable banking system and a positive force for…
The financial services sector is one of the most robust and mature in Jordan, remaining resilient in the face of significant external volatility and retaining its role as a driver of economic growth in 2015. The banking sector in particular has been a major source of strength, with the Central Bank of Jordan (CBJ) maintaining a pro-growth monetary stance, following on from growth in deposits and profits…
The financial services sector is one of the most robust and mature in Jordan, remaining resilient in the face of significant external volatility and retaining its role as a driver of economic growth in 2015. The banking sector in particular has been a major source of strength, with the Central Bank of Jordan maintaining a pro-growth monetary stance, following on from growth in deposits and profits…
Banks and small businesses welcomed the launch of Jordan’s first credit bureau in 2015, with the new privately owned agency set to improve the kingdom’s lending growth, investment climate and support business financing. Although its establishment was delayed for years as politicians decided how best to roll out the new agency, the bureau finally came into operation in late 2015 and is slated to…
As part of an ongoing economic reform programme aimed at boosting private sector investment, the Jordanian government is planning to reform the Amman Stock Exchange (ASE), with the long-term goal of partial privatisation through an initial public offering (IPO). Although prevailing economic conditions will likely prevent a near-term IPO, and a government reshuffle in mid-2016 will see the administration…
Building on recent growth in Islamic finance, Jordan is expanding its funding options and tapping a rising market through the issuance of sukuk (Islamic bonds). Two issuances This year the Central Bank of Jordan (CBJ) issued two rounds of sharia-compliant sovereign bonds for the first time inthe country’s history. The firstoffering, released in May, usedamurabaha(cost-plus…
The Jordanian authorities have launched a new over-the-counter (OTC) exchange as part of a series of initiatives to boost the competitiveness of the kingdom’s capital markets. The new exchange is a by-product of two sets of regulations released earlier this year – namely, the Regulating Directives for Trading in Unlisted Securities and the Listing Securities Directives for 2016 – both of which…
Several innovations in Jordan’s banking sector over the past two years have helped facilitate an increase in cashless transactions, including mobile payment services for bills, peer-to-peer lending for small businesses and other technology-enabled financial services. Launching the platform The Central Bank of Jordan (CBJ) paved the way for e-payments in 2014, when the eFAWATEERcom platform was…
Jordan is intensifying efforts to provide support for start-ups and small and medium-sized enterprises (SMEs) by easing access to financing. Rising public and private investment in Jordan’s digital economy contributes to an optimistic outlook despite some continued obstacles to conventional bank finance. In need of funding According to the 2011 census, roughly 98% of all companies in the kingdom…
