FAQs

1.  What is the Deposit Insurance Corporation of Jordan (JODIC)?

JODIC enjoys a corporate entity status with a financial and administrative independence. It aims at protecting depositors with banks by insuring their deposits with the banks in order to encourage savings and strengthen confidence in the Jordanian banking system. The corporation is also the legal liquidator of any bank that has been decided to be liquidated by the Central Bank of Jordan (CBJ).

2.   Which banks that are subject to the provisions of JODIC's Law?

All Jordanian banks and branches of foreign banks operating in the Kingdom, except:

-     Branches of Jordanian banks operating outside the Kingdom.

 

-     Islamic banks licensed to operate in the Kingdom, unless any one of them decides to join the Corporation in order to insure the deposits held by it.

 

3.    What types of deposits that are subject to the provisions of JODIC's Law?

 

JODIC insures all types of deposits denominated in Jordanian Dinar for individuals, institutions, residents and non-residents, 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

-     Inter bank deposits

-     Cash collaterals within the limits of the value of extended facilities guaranteed by the said collaterals.


4.    Does the JODIC insure deposits in foreign currencies?

Currently, JODIC insures deposits in the local currency which is the Jordanian Dinar according to JODIC's Law. However, JODIC may insure deposits in any foreign currency which the CBJ decides to subject to the provisions of JODIC’s Law.

 

5.    How does the JODIC insure deposits?

 

According to the corporation's Law, JODIC insures deposits by reimbursing depositors with any member bank whose liquidation has been decided by CBJ within thirty days from submitting their claims. 

 

6.  What is the maximum level of insurance sum? 

The coverage limit is up to JD 50,000 (fifty thousand Jordanian Dinar) per depositor per bank. Deposits are not insured separately if made at different branches of a member bank.

 

7.  Would the corporation pay out the deposits that exceed the fifty thousand Jordanian Dinar limit?


The corporation pays out JD 50,000 for each depositor within thirty days of submitting the claim, afterward depositors will be paid back from the proceedings of the bank which is under liquidation, according to legal priority of claims and on pro- rata basis.

 

8.  Does the depositor bear any cost for insuring his deposits?

No, the depositor incurs no cost. However, the member banks pay the cost from their production expenses. 

9.      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. Sophisticated depositors may delegate a professional party to evaluate banks on their behalf.


10.    What is the relationship between the JODIC and the Central Bank of Jordan (CBJ)?

 

The relationship is integral that aims at enhancing the financial safety-net to protect the financial 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.


11.   What banks which 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.