Jordan Deposit Insurance Corporation (JODIC) enjoys a legal entity status with financial and administrative independence. It aims to protect depositors with banks by insuring their deposits in accordance with the provisions of JODIC’s Law in order to encourage savings,enhance confidence in the banking system, and contribute to maintaining banking and financial stability in the Kingdom. The Corporation is also the liquidator and the sole, legal representative, of any bank whose liquidation has been decided.

A. The mandatory membership of Islamic banks:

The Deposit Insurance Fund for Islamic Banks was established, in order to provide justice to all depositors and include all banks operating in the Kingdom under the deposit insurance umbrella. The Fund enjoys a legal entity status and is managed by JODIC. The provisions of JODIC’s Law are applied to the extent not contrary to the provisions of Shariah Principles.

B. Contributing with the Central Bank of Jordan in the measures for the resolution of banks facing problems with core effect on its financial position.

C. Abolishing the requirement to submit a claim by the depositor to pay the due amount of the insurance sum. This amendment aims to complete the reimbursement payment process more quickly and easily.

The provisions of JODIC’s Law apply to all Jordanian banks (commercial and Islamic banks) and the branches of foreign banks operating in the Kingdom, except branches of Jordanian banks operating outside the Kingdom.

A.  JODIC insures all types of deposits denominated in Jordanian Dinar held at member banks for corporates and resident and non-resident individuals, including but not limited to:

• Current and demand deposits.
• Saving deposits.
• Term and subject to notice deposits.
• Certificates of deposits issued by member banks.
• Joint deposits accounts that belong to more than one person.

The uninsured deposits are:

• Government deposits.
• Interbank deposits.
•  Cash collaterals within the limits of the value of extended facilities guaranteed by the said collaterals.

B.  The Deposit Insurance Fund forIslamic Banks insures all types of deposits denominated in Jordanian Dinar for corporates and resident and non-resident individuals, including:

• Credit accounts (e.g., current accounts and demand deposits).
• Mutual investment accounts (e.g., saving deposits, term and subject to notice deposits (.

Currently, JODIC insures deposits held at member banks in the local currency, which is the Jordanian Dinar. However, according to JODIC’s Law, JODIC shall insure deposits in any foreign currency which the Central Bank of Jordan decides to subject to the provisions of JODIC’s Law.

According to JODIC's Law, JODIC insures deposits by paying the insurance sum due to an insured depositor with any member bank whose liquidation has been decided by the CBJ within thirty days from the date of liquidation decision.

The coverage limit is up to JD 50,000 (fifty thousand Jordanian Dinar) per depositor per bank. All person’s accounts held at the same bank and any of its branches are considered as one account.

JODIC pays out JD 50,000 for each depositor within thirty days from the date of the liquidation decision. Afterward, depositors will be paid back from the proceedings of the bank which is under liquidation, according to legal priority stipulated in JODIC’s Law.

No, the depositor incurs no cost. However, a bank pays the cost from its production expenses. 

Monitoring the financial situations of the banks by reviewing and evaluating bank's financial statements and publicly available information, or by delegating a professional party to evaluate banks on their behalf, especially, sophisticated depositors and depositors whose deposits exceed the insurance limit of JD 50,000.   

No, the depositor whose deposit denominated in Jordanian Dinar at any member bank, is insured without the need to submit a claim for the Corporation

The relationship is integral that aims at enhancing the financial safety-net in order to protect the banking system and support its solvency by promoting the monitoring and risk management procedures. It is based on continuous cooperation and communication to facilitate sharing information and exchanging expertise.

JODIC does not make any recommendations. It is the responsibility of depositors to monitor the financial situations of the banks where they hold their deposits at.