Central Bank of Jordan
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CENTRAL BANK OF JORDAN FIFTY SECOND ANNUAL REPORT 22001155 RESEARCH DEPARTMENT Deposit No. at the National Library of Jordan 707 / 3 / 2002 Issued in September 2016 Central Bank of Jordan Press OUR VISION To be one of the most capable central banks regionally and internationally in maintaining monetary stability and ensuring the soundness of the financial system thereby contributing to sustained economic growth in the Kingdom. OUR MISSION Ensuring monetary and financial stability by maintaining price stability, protecting the value of the Jordanian Dinar and through an interest rate structure consistent with the level of economic activity thereby contributing toward an attractive investment environment and a sound macroeconomic environment. Furthermore, the Central Bank of Jordan strives to ensure the safety and soundness of the banking system and the resilience of the national payments system. To this end, the Central Bank of Jordan adopts and implements effective monetary and financial policies and employs its human, technological, and financial resources in an optimal manner in order to effectively achieve its objectives. OUR VALUES Loyalty : Commitment and dedication to the institution, its staff and clients. Integrity : Seeking to achieve our organizational goals honestly and objectively. Excellence : Seeking to continuously improve our performance and deliver our services in accordance with international standards. Continuous Learning : Aspiring to continuously improve practical and academic skills to maintain a level of excellence in accordance with international best practices. Teamwork : Working together, on all levels of management, to achieve our national and organizational goals with a collective spirit of commitment. Transparency : Dissemination of information and knowledge, and the simplification of procedures and regulations in a comprehensible and professional manner. BOARD OF DIRECTORS H.E. DR. ZIAD FARIZ Governor and Chairman H.E. DR. MAHER"SHEIKH HASAN" H.E. DR. ADEL AL SHARKAS Deputy Governors H.E. ENG. SAID DARWAZEH H.E. ENG. SAMER MAJALI MR. IBRAHIM DABDOUB MR. ISAM BDEIR MR. GHASSAN NUQUL * * Mr. Ghassan Nuqul was appointed member in the Central Bank Board of Directores on 29/11/ 2015. ORGANIZATIONAL CHART/ CENTRAL BANK OF JORDAN Other Permanent (End of 2015) Committees in the Bank Information Technology Security Committee BOARD OF DIRECTORS Permanent Committees Bank's Employees' Suggestions & Complaints Committee Real Estate Committee Exchanging Damaged & Mutilated Bank Notes Committee Consultative Committee Procurement Committee Open Market Operations Committee Procurement Acceptance Committee Business continuity management committee(bcmc) Social Activities Committee Governor’s Office IT Steering Committee Currency Destruction Committee GOVERNOR Department Tender Committee Investment Committee Projects Management Committee for Financial Stability Committee Enhancing Financial Inclusion Risk Management Committee Permanent Committees Permanent Committees Human Resources Committee Domestic Tender Committee DEPUTY GOVERNOR DEPUTY GOVERNOR Credit Facilities Committee Legal Consultations Office Human Resources Dept. Domestic Payments and Financial Stability Dept. Open Market Operations & Investments & Foreign Banking Supervision Dept. Public Debt Dept. Risk Management Dept. Research Dept. Banking Operations Dept. Operations Dept. Planning & Organization Div. Accounts Management Div. Systemic Risk and macro Primary Issues Div. Investment Div. Operational Risk Management Monetary Affairs Div. Prudential analysis Div. Supervisory Units Supporting Units Training & Development Div. Back-Office & Settlements Div. Open Market Operations Div. Settlements Div. Div. National Economy Div. Financial Stability Div. Personnel Div. Payment & settlements Systems Supporting Operations Div. L/C’s & Payment Agreements Financial Risk Management Div. International Economics Div. Payroll & Personal Expenditures Management & E-Payment Examination Group Div. Information Security Management Services. Banking Studies and Analysis & Development Div. Balance of Payments Div Div. Information and Foreign Transfers Div. Div. Related Technology Licensing Div. Credit Facilities Div. Public Finance Div Housing, Savings & Oversight of Payment & Banking Statistics Div. External Loans & Grants Div. Compensations Div. Settlement Systems Div. supervisory Group Economic Modeling Div Credit Bureaus & Credit Concentration & Correspondent Banks Div. Studies, Statistics & Policies Div. Risk Div. Statistics Div Medical Services Div. Micro Finance Foreign Accounts Div. Medical Clinic Cheques Clearing Management Supervisory Group Banking Operations Library Div. Follow-up Div. Middle Office Public and Customers Front- Data Analysis and Office Div. Studies Div. Financial Consumer Protection Div. Administrative Dept. Money Exchange Information Financial Dept. Aqaba Branch Internal Audit Dept. Supervision Dept. Irbid Branch Currency Issue Dept. Technology Dept. Buildings & Project Management Div. Licensing Div. Software Development Accounting & Financial Planning Domestic Accounts & Payments Domestic Accounts & Payments Operations Auditing Teams Currency Management Div. Groups . Div. Maintenance Div. Inspection Div. Div. Div. Information Systems Auditing Team Strong Rooms & Tellers Public Relations Div. Analysis & Supervision Div. Office Support and computer Administrative Expenditures & Treasury Div. Treasury Div. Management Div. Services Div. Settlements Div. Studies & Documentation Div. Administrative Services Div. Studies & Legislations Div. Administrative & Financial Affairs Administrative & Financial Affairs Cash Processing Div. Operations Div. Tenders Management Div. Div. Correspondence & Documentation Div. Div. Currency Settlements & Safe Infrastructure Div. Procurement & Warehouses Div. Central Accounting Div. Custody Div. Interior Security Unit Central Accounting Div. Support Systems Div. Electronic Paying Communication Technical support & operations Div. Technical support & operations Div. Currency Museum Network Administration Div. Div. IT Security Div. Database Administration Div. E-Government & Acquired Systems Administration Div. Quality Assurance Div. Information System Library. Central Bank Office at the Royal Hashemite Court Jordan Banking System (End of 2015) 1964 Central Bank of Jordan 3 National Banks Foreign Banks Commercial Banks Commercial Banks 1930 Arab Bank PLC 75 - 117 1951 Egyptian Arab Land Bank 10 4 1956 Jordan Ahli Bank PLC 56 1 6 1957 Rafidain Bank 2 - 1960 Bank of Jordan PLC 70 13 14 1974 Citibank N.A. 2 - 1960 Cairo Amman Bank 72 13 19 1969 Standard Chartered Bank 6 - 1974 The Housing Bank for Trade and Finance 112 13 14 1977 Jordan Kuwait Bank 2004 National Bank of Kuwait 3 - 56 1 2 1978 Jordan Commercial Bank 28 1 4 2004 Banque Audi SAL 13 2 2004 BLOM Bank 1978 Arab Jordan Investment Bank 18 14 1 14 - 1989 Arab Banking Corporation (Jordan) 27 - - 2010 National Bank of Abu Dhabi 2 - 1989 Invest Bank 11 - - 1991 Bank al Etihad 38 - - 1993 Societe Generale De Banque-Jordanie 17 - - 1996 Capital Bank of Jordan 12 - - Islamic Banks Islamic Banks 1979 Jordan Islamic Bank 73 20 2011 AL Rajhi Bank 6 - 1997 Islamic International Arab Bank PLC 41 - 2010 Jordan Dubai Islamic Bank 21 - Specialized Credit Institutions Public Ownership 1959 Agricultural Credit Corporation 22 1965 Housing & Urban Development Corp. 2 1966 Cities and Villages Development Bank 11 Money Changers Headquarters 141 Branches 125 Representative Offices In Jordan for Foreign Banks - Out of Jordan for Jordanian Banks 8 Year of establishment. Number of branches including headquarters. Number of mini-branches. Number of branches outside Jordan. Foreword The Central Bank of Jordan is pleased to release its fifty second annual report, which highlights the main economic developments of the national economy during the year 2015. Our economy managed to withstand under persistently difficult conditions in 2015. Jordan grappled with addressing a number of exogenous shocks, notably the closure of land trade routes with Syria and Iraq, and other security-related challenges which adversely impacted the economy. Nevertheless, GDP growth reached 2.4 percent, deflation registered 0.9 percent reflecting the sharp decline in food, energy and transportation prices. The current account deficit (including grants) registered 8.9 percent of GDP, while the central government budget deficit reached 3.5 percent of GDP as a result of the decline in foreign grants. Foreign reserves at the CBJ remained comfortable at USD 14.2 billion by the end of 2015, which supported the confidence in Jordan’s economy. Macroeconomic policies have been critical to preserve favorable overall conditions, and Financial conditions have remained supportive owing to the CBJ’s measures which were effective in maintaining monetary stability, and ensuring the soundness of the banking system. Lastly, I would like to express my sincere gratitude to the CBJ staff for their dedication in producing this publication. My gratitude is also extended to all government units, banks, and financial institutions for providing crucial data and information to prepare this report. Dr. Ziad Fariz The Governor and Chairman CONTENTS Page FOREWORD SUMMARY OF ECONOMIC DEVELOPMENTS IN 2015 1 CHAPTER ONE THE REAL SECTOR 7 Output ……………………………………………………………………….……….