Raising the Coverage Limit to JD 50,000

Upon the recommendation of JODIC's Board of Directors, the Cabinet decided to raise the deposit insurance coverage limit from JD10,000 to JD 50,000 (fifty thousand Jordanian Dinars) effective January 1st, 2011, based on the strength and soundness of the financial situation in the Kingdom especially with the presence of effective governance practices and banking supervision that are benchmarked with the best international practices. Furthermore, the decision is based on JODIC's financial solvency and sufficiency of its reserves' level and its ability to provide the legal deposit insurance coverage limit of fifty thousand Jordanian Dinars. Under the new coverage limit, the percentage of fully insured depositors at member banks exceeded 97%, and the coverage limit to the average insured deposit increased to approximately 4.5 multiples compared to 0.9 multiples under the previous coverage limit. Furthermore, the coverage limit is approximately 17 fold the per capita GDP compared to 3.6 fold previously. These levels are beyond the international standards relevant to the deposit insurance.