Deposit Insurance Corporation
Jordan Deposit Insurance Corporation (JODIC) was established by virtue of the Law No. (33) of the year 2000. The Corporation is a public entity that enjoys full financial and administrative independence. It aims at encouraging savings and enhancing confidence in the banking system in the Kingdom.
The adoption of the limited and explicit deposit insurance system was in line with the international developments in the structure of the banking sector; to enhance the role of the financial safety- net that plays a vital role in maintaining financial stability in the banking system in the Kingdom. The function of deposit insurance is to support other fundamental functions of the Central Bank of Jordan (CBJ) which are related to banking supervision and monitoring.
Also, the role of depositors in monitoring the financial positions of the banks ensures banks to take the necessary actions to avoid systemic risk, which will support banks solvency and maintain its operational efficiency in order to maintain the financial stability in the Kingdom.
JODIC is managed and supervised by a Board of Directors, chaired by the Governor of the Central bank of Jordan and comprises four members from the public sector, including the Director General of JODIC, in addition to two members appointed by a decision of the Council of Ministers.
To be a leading professional deposit insurance corporation at the regional and international levels.
To protect depositors with banks, to encourage savings, as well as to strengthen confidence in the Jordanian banking system.
- To provide full protection for the vast majority of depositors.
- To exhibit a high level of financial operational capacity and readiness, and to build up an appropriate level of reserves.
- To manage the reimbursement and liquidation processes efficiently and effectively.
- To contribute in increasing awareness of risk management in the banking sector.
- To promote public awareness of deposit insurance system in the Kingdom.
Loyalty, Integrity, Excellence, Team Spirit, and Continuous Education & Training.
- Reimbursing insured depositors.
- Liquidation of failed banks.
- Reserves' management.
- Monitoring operating banks in the Kingdom.
Main Features of the Deposit Insurance System in Jordan:
1. Membership: membership is mandatory for all Jordanian banks and branches of foreign banks operating in the Kingdom except the branches of Jordanian banks operating abroad. The membership for Islamic banks* operating in the Kingdom is voluntary, unless any of them decides to join the scheme.
2. Coverage Limit: The maximum coverage limit is JD 50,000 (fifty thousand of deposits denominated in Jordanian Dinar) per depositor per member bank
3. Scope of Coverage: JODIC insures all types of deposits denominated in Jordanian Dinar for individuals, institutions, residents and non-residents, except:
- Government deposits
- Interbank deposits
- Cash collaterals within the limits of the value of extended facilities guaranteed by the said collaterals.
4. Premium Fees: JODIC applies an annual flat fee of 2.5 per thousand of total deposits subject to the provisions of its Law paid by each member bank.
* The amended JODIC’s Law comprises the mandatory membership of Islamic banks at JODIC.
- PO Box
- Shmeisani Prince Shaker bin Zaid Street
- +962 6 5204040
- ZIP Code
- +962 6 5669910