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Frequently Asked Questions
 
What is the Deposit Insurance Corporation?
Which banks are insured by the JODIC
What kind of deposits does the JODIC insure
Does the JODIC insure deposits in foreign currencies
How does the Corporation insure deposits
What is the maximum insurance level
Would the Corporation pay out the deposits that exceed the Fifty- thousand Jordanian Dinars  limit
Does the depositor bear any cost for insuring his deposits
What is the role of depositors in the whole process
What is the relation between the JODIC and the Central Bank of Jordan
What banks does the JODIC recommend for placing the deposits at
 
 
 
What is the Deposit Insurance Corporation?
 
It is a corporation that enjoys a corporate entity status with a financial and administrative independence. It aims at protecting depositors with banks in order to encourage savings and strengthen confidence in the Jordanian banking system. The Corporation is the sole legal liquidator of any bank whose liquidation has been decided.
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Which banks are insured by the JODIC
 

All Jordanian banks and branches of foreign banks operating in Jordan, excluding Islamic banks, where the law makes it optional for them to join the JODIC.
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What kind of deposits does the JODIC insure
 
Except for Interbank, Government deposits, and cash collaterals within the limits of the value of the extended facilities guaranteed by the said collaterals, all customer deposits in Jordanian Dinars are insured, including: Demand & Current accounts, saving accounts, time- deposits,  notice deposits and  certificates of deposits (CDs).
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Does the JODIC insure deposits in foreign currencies
 
Currently it doesn't, but the law left the door open for insuring deposits in foreign currencies in the future .
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How does the Corporation insure deposits
 
By reimbursing depositors of any member bank whose liquidation has been decided by the Central Bank of Jordan, with a prompt reimbursement (within one month from submitting the claim) for their deposits in Jordanian Dinars
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What is the maximum insurance level
 

Fifty Thousand Jordanian Dinars per depositor per bank.
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Would the Corporation pay out the deposits that exceed the Fifty- thousand Jordanian Dinars  limit
 

The Corporation pays out JD 50,000 for each depositor within one month of submitting the claim, afterward depositors will be paid back from the proceedings of the bank, under liquidation, according to legal priority of claims and on pro- rata basis.
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Does the depositor bear any cost for insuring his deposits
 
No,the depositor incurs no cost, member banks pay the cost from their operating expenses.
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What is the role of depositors in the whole process
 

Monitoring the financial conditions of the banks by reviewing and evaluating bank's financial statements and publicly available information. Grand depositors  may delegate a professional party to evaluate banks on their behalf.
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What is the relation between the JODIC and the Central Bank of Jordan
 
The relationship between JODIC and CBJ is an institutional one that aims at establishing a National Safety- Net, in which participants coordinate and harmonize their policies and procedures. The relation is based on continuous cooperation and communication to facilitate information and experience sharing.
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What banks does the JODIC recommend for placing the deposits at
 
JODIC does not make such recommendations. It is the responsibility of depositors to monitor the financial conditions of banks where they hold their deposits
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