Financial Services
From The Report: Jordan 2016
View in Online Reader

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 at commercial banks in 2015.

This chapter contains an interview with Ziad Fariz, Governor, Central Bank of Jordan (CBJ); and Nemeh Sabbagh, CEO, Arab Bank.

Articles from this Chapter

Overview

Still a pillar: Led by banking, the financial services sector remains an engine for growth in the kingdom
OBG
plus

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 at commercial banks in 2015. Although the insurance and capital markets segments recorded more…

Analysis

Where credit is due: Ease of doing business expected to improve with the launch of the country’s first credit bureau
OBG
plus

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 underpin government efforts to bolster lending to small and medium-sized enterprises (SMEs). While…

Interview

A stronger system: OBG talks to Ziad Fariz, Governor, Central Bank of Jordan (CBJ)
OBG
plus

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 attempting to improve areas in the sector which need further strengthening, or which have not been addressed…

Analysis

Path to privatisation: Restructuring of the bourse is expected to enhance performance
OBG
plus

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 take control of the bourse to implement these reforms prior to any IPO, the ASE’s privatisation…

Interview

Sound and stable: OBG talks to Nemeh Sabbagh, CEO, Arab Bank
OBG
plus

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 business expansion. The Central Bank of Jordan (CBJ) plays a critical role by providing strong oversight…