JODIC Releases its 2019 Annual Report

Jordan Deposit Insurance Corporation (JODIC) released its 2019 annual report, which highlights the Corporation’s key achievements and its financial results during the year. The report reflected the main indicators of the development of deposits and depositors in the banking system; 76.8% of its deposits denominated in the local currency, 96.9% of those deposits are eligible, 97.7% of those depositors are fully insured. Also, the annual report demonstrated JODIC’s activities at the regional and international levels, illustrating its effective role through participating in the committees and events that are relevant to the deposit insurance industry.

At the legislative aspect, the annual report showed that the amended JODIC's Law no. (8/2019) was issued, granting JODIC a vital role by expanding its mandates to collaborate with the Central Bank of Jordan in the resolution process. Also, the amended Law stipulated the mandatory membership of Islamic banks under the deposit insurance umbrella that is compliant with Shariah Principles.

As for the financial performance for the year 2019, JODIC’s financial statements disclosed an increase of JD 75.2 million in total assets compared to the year 2018 to reach JD 853 million at the end of 2019. Public debt instruments composed 97.9% of JODIC’s investment portfolio, and the return of investment amounted to JD 42.9 million with a growth rate of 17.9% compared to a year earlier. The report showed the Corporation’s financial soundness through disclosing the indicators of the reserves adequacy, as JODIC’s reserves amounted to JD 849.8 million at the end of 2019, which covers 10.94% of the insurance policy. Meanwhile, the report showed that the reserves of the Deposit Insurance Fund for Islamic Banks reached JD 9.9 million according to its financial position at the end of 2019.

The 2019 annual report highlighted JODIC’s pivotal role in collaboration with the Central bank of Jordan as a main recognized pillar of the financial safety-net, in order to encourage savings, enhance confidence in the banking system, and ultimately contribute to maintaining the banking and the financial stability in the Kingdom.