Fiscal Year 2026
Capacity Development Activities
Financial Supervision and Regulation
Supervisory Review Process (May 11-15)
A significant milestone has been reached in the SRP project with the successful development and documentation of a comprehensive SRP methodology. The Central Bank of Jordan (CBJ) is now ready to embark on the second phase of the project, which will involve compiling essential data, defining benchmarks for key risk indicators, and conducting rigorous testing and calibration. As part of the SRP analysis, each bank's risk profile will be evaluated, and a score will be assigned accordingly. This score, along with the bank's role in the Jordanian banking sector, will help determine the level of supervisory intensity and inform annual supervisory plans, promoting a more risk-based approach. Furthermore, the SRP methodology includes a matrix that links each bank's score to a range of capital requirements. This will ensure that capital requirements are more responsive to the risk profiles of individual banks, facilitating the implementation of Basel III Pillar 2.
The Internal Capital Adequacy Assessment Process (ICAAP) (May 18-22)
METAC assisted the Central Bank of Jordan (CBJ) to enhance regulation for the Internal Capital Adequacy Assessment Process (ICAAP). This initiative is an essential milestone in the medium-term SRP project. In September, additional technical assistance will focus on creating guidelines for supervisors to evaluate banks’ ICAAP reports and assess Pillar 2-related risks. This project will support the implementation of Basel III Pillar 2 requirements, enabling supervisors to better understand the risk profiles of banks, evaluate their internal capital assessments, and enforce necessary corrective actions, risk mitigation strategies, and additional capital buffers to address identified risks.
Public Debt Management
Local Currency Bond Market (LCBM) development (July 21-31)
METAC supported the Central Bank of Jordan (CBJ) and the Ministry of Finance (MoF) in assessing the level of LCBM development and identify the key challenges in implementing the building blocks of the domestic government debt market, using the IMF/WB LCBM diagnostic framework and formulating a sequenced reform plan for its deepening. The structured diagnosis and reform plan covers the following areas: i) legal and regulatory framework; ii) money market; iii) primary market; iv) secondary market; v) investor base; and vi) financial market infrastructure. The reform plan will serve as a medium-term roadmap for market development. METAC will be available to continue supporting the authorities in implementing the approved reform plan.
