AMMAN — The Central Bank of Jordan (CBJ) on Monday issued its 2024 Financial Stability Report, assessing the financial sector and the overall macroeconomic situation in Jordan, along with an analysis of the risks and opportunities that may affect the stability of the financial system.

 

The report defines financial stability as the ability of banks and other financial institutions to withstand risks and prevent structural imbalances, according to the public service TV Al Mamalak.

 

The report said that the Jordanian economy has demonstrated “strong” resilience and an “exceptional” ability to maintain macroeconomic stability despite heightened geopolitical uncertainty in the region, particularly due to the ongoing war in Gaza and its longer-than-expected repercussions.

 

Monetary and financial stability in the Kingdom has remained robust, supported by the CBJ’s prudent monetary and supervisory policies, according to the report.

It also highlighted that Jordan’s banking sector continues to enjoy a high level of stability, with notable improvements in key financial ratios and indicators.

 

The capital adequacy ratio of the banking sector rose to 18 per cent at the end of 2024 and June 2025, compared with 17.9 per cent at the end of 2023, comfortably above the minimum regulatory requirement of 12 per cent, the figures showed.

The sector also maintains safe liquidity levels, exceeding the thresholds required by CBJ regulations, the report added.

 

Non-performing loans accounted for 5.8 per cent of total loans as of June 2025, 71.3 per cent of which were covered by provisions. Stress test results indicated that the Jordanian banking sector remains capable of withstanding shocks and elevated risks, thanks to strong capitalisation, liquidity and profitability levels.

 

The report noted that the CBJ continues to implement its Green Finance Strategy (2023–2028), launched in 2023, the first of its kind in the Middle East and North Africa region. The strategy serves as a roadmap for promoting green finance and mitigating climate risks across the banking and financial sectors.

 

In line with this effort, the CBJ has issued the Kingdom’s first climate risk management instructions for banks, aimed at strengthening and operationalising climate risk governance within the sector.

 

The report also referred to the CBJ’s second Financial Inclusion Strategy (2023–2028), launched in March 2024, which focuses on enabling responsible and sustainable access to financial products and services for all segments of society, in line with the goals of Jordan’s Economic Modernisation Vision.

 

The CBJ continues to review and update its legislative framework to align with the latest international developments and best practices regarding the role of central banks in maintaining monetary and financial stability, the report said