Result Based Management Framework - METAC

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IV. JORDAN
A. Banking Supervision
Past Activities
METAC TA in banking supervision to the Central Bank of Jordan (CBJ) was minimal in
the first two phases of METAC’s operations. However, beginning in FY 2009, METAC
offered considerable TA to the CBJ mainly on:
Reviewing and upgrading the onsite inspection manual to enhance its risk-focused
features, and providing on-the-job training to implement the new manual.
Training on the implementation of pillar 2 of the Basel II framework.
Developing a framework for licensing private credit bureaus and training the
supervisors on it.
Starting two projects, the first on developing an EWS model and the second to
assist in implementing Basel II and Basel III.
Work Program
Objectives
The main objective of the TA provided by METAC to the CBJ would be to enhance the
micro-prudential supervision at CBJ and to establish a good macro-prudential framework
that enhances financial stability in Jordan.
Outcomes
The CBJ has a risk-focused and effective offsite supervisory framework, including
a good and well functioning EWS, which will help in monitoring and maintaining
the safety and soundness of the Jordanian banking sector.
The CBJ has a regulatory framework that is in line with the latest standards issued
by Basel Committee on Capital, Leverage and Liquidity.
The CBJ supervisors are well trained and have a thorough understanding of the
latest international banking supervision standards, especially the application of
Basel III and the pillar 2 of Basel II.