Overview

Jordan Deposit Insurance Corporation (JODIC) was established by virtue of Law no. (33) of the year 2000 and its amendments. JODIC enjoys a corporate entity status with financial and administrative independence. It aims to protect depositors with operating banks by insuring their deposits in order to encourage savings, strengthen confidence in the banking system, and contribute to maintaining banking and financial stability in the Kingdom. JODIC, since its establishment, has pursued attaining the objectives of the limited and explicit deposit insurance system in order to play its main role as the sole insurer, and legal liquidator of any bank whose liquidation has been decided by the Central Bank of Jordan (CBJ).

The amended version of JODIC’s Law was issued, the Law no. (8) of the year 2019, to further enhance confidence in the banking system and promote JODIC’s role in line with the developments in the deposit insurance industry and international best practices. The amendments of the Law included Islamic banks under the deposit insurance umbrella, in order to protect the vast majority of depositors with all operating banks in the Kingdom, by establishing the Deposit Insurance Fund for Islamic Banks. Moreover, JODIC’s amended Law granted the Corporation additional mandate, besides its current mandates as deposit insurer and banks’ liquidator, represented in contributing to the resolution of any bank that faces problems with core effect on its financial position by taking one or more of the actions set out in the amended Law, with the approval of the CBJ.

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.

JODIC's Vision:

To be a leading professional deposit insurance corporation at the regional and international levels.

JODIC's Mission:

To protect depositors with banks by insuring their deposits in order to encourage savings, to strengthen confidence in the banking system, and to contribute to maintaining banking and financial stability in the Kingdom.

JODIC's Objectives:

1. To provide full protection for the vast majority of depositors in the banking system.
2. To exhibit a high level of financial capacity, operational readiness, and to build up an appropriate level of reserves.
3. To manage the reimbursement and liquidation processes efficiently and effectively.
4. To contribute to the resolution of any bank that faces problems with core effect on its financial position.
5. To contribute in raising risk management awareness culture in the banking sector.
6. To promote public awareness of the deposit insurance system in the Kingdom.

JODIC's Values:

Loyalty, Integrity, Excellence, Team Spirit, and Continuous Education & Training.

JODIC's Mandates: 

• Deposit Insurance.
• Liquidation of failed banks.
• Reserves' management.
•  Banks’ resolution.
• 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.

2. Coverage Limit:

The maximum coverage limit is JD 50,000 (fifty thousand) per depositor per bank.

3. Scope of Coverage:

JODIC insures all types of deposits denominated in Jordanian Dinar for individuals, corporate, 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:

According to the provisions of JODIC’s Law, the Corporation levies an annual flat fee of 2.5 per thousand of total eligible deposits paid by each bank.