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.
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.
- What is the maximum insurance level?
Fifty Thousand Jordanian Dinars per depositor per bank.
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.
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).
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 .
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.
- 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.
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.
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.
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.