Deposit Insurance Fund For Islamic Banks


The Deposit Insurance Fund for Islamic Banks was established at the Jordan Deposit Insurance Corporation by the virtue of the amending law of JODIC's Law No. (8/2019) issued on Apr 1st, 2019. The Fund enjoys a legal entity status managed by the Corporation. The amending Law expanded the deposit insurance umbrella to cover Islamic banks complying with the Shariah rulings, aiming at protecting the vast majority of depositors with the banks operating in the Kingdom. 

The Fund aims to protect depositors with Islamic banks by insuring their deposits. The Fund is the sole insurer of the deposits at the Islamic banks in the banking system in accordance with the provisions of JODIC’s Law, in order to encourage savings, enhance confidence in the Islamic banks, and contribute to maintaining banking and financial stability in the Kingdom . The relationship between the Corporation and the Fund is based on Agency with fee “wakalah bi al ujr”

The provisions of JODIC’s Law shall apply to the Fund to the extent not contrary to the specific provisions of the Fund in the Law. The Fund is based on the principle of Solidarity and Cooperation “Takaful and Ta’awun”. The contributions paid by the Islamic banks, deposit holders, and the Corporation are considered as Donation “Tabarru’.

The Fund provides full protection for more than 98% of depositors with Islamic Banks.



     

 

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