The Central Bank of Jordan has advanced deregulation of the country's banking sector considerably in recent years. According to Adel Satel, analyst at Moody's Investors Service: "Continued reforms in the financial sector have strengthened the banking system's capital base, and introduced additional prudential requirements and more transparency into the system." Roger Smithyes, general manager of Jordan International Bank London, says: "Overall, the sector is very well managed and very well controlled. It goes in line with the general view of Jordan."
The IMF's financial system stability assessment concluded in 2004 that the country had no substantial fiscal vulnerabilities, and the banking system generally showed high capital ratios, liquidity and profitability.
The central bank has taken an active approach to its management of poorly performing banks, and is now able to authorize capital injections, management changes, and mergers with stronger banks. Last year, it doubled the capital requirement of commercial banks...
