Deposit Insurance Fund For Islamic Banks

The Deposit Insurance Fund for Islamic Banks was established in accordance with the amended Law of the Deposit Insurance Corporation (JODIC), Law no. (8 / 2019) issued on April 1st, 2019, as a Fund enjoys a legal entity status managed by the Corporation. The amendment of JODIC’s Law included Islamic banks under the umbrella of the deposit insurance and in accordance with the provisions of Shariah; to insure depositors with all banks operating in the Kingdom.

The Fund aims to protect the depositors with Islamic banks by insuring their deposits and it is the sole insurer for deposits held at Islamic banks in the Jordanian banking system in accordance with the provisions of the Law, in order to encourage savings, enhance confidence in 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 “Wakala be al-ujr”.

The provisions of JODIC’s Law shall apply to the Fund to the extent that they do not conflict with the Fund’s provisions in the same Law. The Fund is based on the Principle of “Takaful”. The Fund’s financial resources shall be considered as a donation paid by Islamic banks, depositors and the Corporation.

The Fund provides full insurance for approximately 98% of the depositors with Islamic banks.