-Prime Minister Emphasizes the Importance and Role of Jordanian Banks as a Fundamental Pillar of National Economic Strength, Stability, and Resilience Throughout History.

-The Prime Minister affirms the role of the banking sector in implementing the Economic Modernization Vision and the government’s aspiration for the sector to continue supporting development and major projects in the Kingdom.

-Chairman of the Association of Banks: The initiative includes implementing projects to build schools, facilities, and health centres across various governorates according to the highest quality standards.

-Governor of the Central Bank: The partnership between the government and the banking sector forms a foundation for building a more resilient economy capable of adapting to regional and international changes.

Amman, March 16 (Petra) – Prime Minister Dr. Jaafar Hassan praised the initiative of Jordanian banks to support the health and education sectors by allocating 90 million dinars over three years as part of their social responsibility to support national development and enhance economic growth.

The Prime Minister emphasized the importance and role of Jordanian banks as a fundamental pillar of national economic strength, stability, and resilience throughout history, highlighting their significant development over the past two decades.

This came during the launch ceremony of the Jordanian banks’ initiative to support the health and education sectors on Sunday evening at the Association of Banks in Jordan.

He also commended the significant progress of the Jordanian banking sector over the past quarter-century, highlighting its advanced global rankings, particularly in financial stability and banking system resilience.

Furthermore, the Prime Minister stressed the banking sector’s role in implementing the Economic Modernization Vision, its partnership in stimulating economic growth, supporting investments and leading productive projects, and creating more job opportunities for Jordanian youth.

He expressed the government’s aspiration for the banking sector to continue supporting development and major projects in the Kingdom, including the National Carrier Project, urban infrastructure projects, railways, public transportation, and other key sectors. These initiatives aim to achieve a significant leap in foreign investment and economic growth rates over the next four years.

He pointed out that the progress in the banking sector results from a wise royal vision and continuous efforts that began at the start of His Majesty King Abdullah II’s reign in 1999, when economic reform was initiated in partnership with the private sector. One of the key priorities has been enhancing the role of banks in economic development.

He confirmed that over the past 25 years, this significant development in the Jordanian banking sector has materialized, positioning it among the highest-ranked globally, particularly in financial stability and banking system resilience.

He further noted that this financial strength is rooted in the effective monetary policy and banking supervision implemented by the Central Bank of Jordan. These measures have played a clear role in enhancing monetary and financial stability, increasing foreign reserves at the Central Bank to over 21 billion dollars—a record figure—while maintaining the financial strength of banks and their ability to effectively support the national economy.

The Prime Minister highlighted the Central Bank’s efforts in strengthening corporate governance of financial institutions under its supervision in recent years, improving their business models and regulatory frameworks. These efforts have contributed to enhancing the efficiency of these institutions and their role in the economy.

He stated: “Today, you are presenting an unprecedented model of national social responsibility in the private sector by allocating an additional 90 million dinars over three years to support development efforts in the health and education sectors specifically.”

He added: “This is not new to the banking sector in Jordan, and I believe that institutionalizing social responsibility efforts and aligning them with developmental needs and priorities of essential service sectors is important and necessary.” He pointed out that during his field visits to various locations in the Kingdom, the need to unify these efforts and institutionalize them became apparent to ensure proper implementation and achieve the desired results and impact in communities.

The Prime Minister pointed out that the banking sector has a well-documented track record in this field, whether in supporting productive projects, youth, cultural, and sports initiatives, or during the COVID-19 crisis. “The schools and health centers built with your support will serve as evidence of national efforts converging to serve citizens and build a promising future for our youth through education and proper empowerment.”

He confirmed that the banking sector in Jordan is a key partner in implementing the Economic Modernization Vision, as it participated in its formulation and is now participating in its implementation. “We are partners in a shared project and a unified goal to stimulate economic growth, support investments, and create more future job opportunities for our youth.”

For his part, Chairman of the Association of Banks, Bassem Al-Salem, reaffirmed the Jordanian banking sector’s commitment to its national, social, and humanitarian role in contributing to the nation’s progress and improving citizens’ lives, stating that this initiative reflects a genuine partnership between the banking sector and the government.

He explained that this initiative aligns with the Economic Modernization Vision and stems from the royal interest in supporting the health and education sectors and the necessity of modernizing and developing these essential sectors. It also aims to expand the construction of schools, hospitals, and health centers to meet growing demand.

He noted that projects to build schools, facilities, and health centers will be implemented across various governorates according to the highest quality standards, with funding linked to actual project completion milestones to ensure adherence to the set timeline.

Al-Salem highlighted that banking assets have grown at an annual rate of 17.6% from 2000 to 2024, increasing from approximately 12.9 billion dinars to nearly 70 billion dinars. Similarly, bank deposits have risen from 8.2 billion dinars to 47.7 billion dinars, with an annual growth rate of 18.7%, while credit facilities granted by banks have expanded from 4.55 billion dinars to 34.8 billion dinars, reflecting an annual growth rate of 26.6%.

He pointed out that banking services have experienced broad growth and qualitative transformations through the adoption of modern financial technologies. Banks have expanded digital banking services via mobile applications, online platforms, and advanced electronic payment systems, enabling citizens to conduct transactions easily and securely around the clock. This technological development has enhanced banking efficiency, supported the digital economy, and facilitated the government’s digital transformation efforts.

For his part, The Governor of Central Bank of Jordan, H.E Dr. Adel Al-Sharkas, stated that the partnership between the government and the banking sector forms a fundamental pillar for building an economy that is more resilient and capable of adapting to regional and international changes. It also serves as a key driver of the Royal Vision aimed at enhancing the investment environment, increasing Jordan’s competitiveness, and solidifying its position as a leading financial and banking hub in the region.

Al-Sharkas added that the Central Bank expects Jordan’s economic growth to rise to 2.7% in 2025 and continue increasing to 3.5% in the medium term.

He noted that the inflation rate reached 2.2% in the first two months of the current year, with expectations that it will stabilize at 2% in 2025, ensuring the stability of purchasing power and the competitiveness of the national economy. Meanwhile, the dollarization rate declined to 18.4%, indicating increased confidence in the Jordanian dinar and the banking sector, as well as macroeconomic stability.

He pointed out that the Jordanian economy is performing positively, as national exports grew by 4.1% in 2024, surpassing expectations and reaching $12.1 billion. Additionally, tourism revenues increased by 22% during the first month of the current year compared to the same period in 2024.

Moreover, remittances from Jordanians working abroad rose by 2.8% in 2024, and the Kingdom attracted $1.3 billion in foreign direct investment during the first three quarters of 2024, despite regional instability. This contributed to supporting foreign reserves and boosting domestic demand.

Al-Sharkas highlighted that these positive developments led to an economic growth rate of 2.4% in the first three quarters of 2024, with expectations that this rate will remain stable for the entire year, exceeding the International Monetary Fund’s forecast of 2.3%.

He explained that the Economic Modernization Vision (2023-2033) serves as a strategic framework for Jordan’s economy, successfully integrating all reform efforts, including those being implemented under the IMF-supported Extended Fund Facility program. These reforms are directed toward achieving the vision’s goals by enhancing innovation, competitiveness, and productivity and supporting sustainable development in the long run.

Al-Sharkas emphasized that the monetary and banking policies of the Central Bank of Jordan play a crucial role in maintaining macroeconomic stability and resilience. He reaffirmed the Central Bank’s unwavering commitment to its primary goal of maintaining monetary stability, contributing to financial stability, and fostering a strong and robust banking sector that supports sustainable economic growth.

He reiterated the vital role of the banking sector in attracting domestic and foreign savings and directing them toward financing productive activities. He also emphasized the sector’s efficiency in meeting the public budget’s financing needs, adopting best banking practices, enhancing its regional leadership position, and improving the quality of financial services.

Additionally, he pointed out that Jordanian banks have launched several initiatives, including investment funds for startups, small and medium-sized enterprises, and real estate development projects.

Al-Sharkas noted that Jordanian banks maintain high capital levels, with a capital adequacy ratio of 18% at the end of 2024, significantly exceeding both the Central Bank of Jordan’s minimum requirement of 12% and the Basel III international standard of 10.5%.

He also highlighted that the Jordanian banking sector enjoys comfortable liquidity levels, with a liquidity coverage ratio of approximately 145%, surpassing the Central Bank’s minimum requirement of 100%.

Furthermore, non-performing loans (NPLs) remained at relatively low levels, standing at 5.6%, while the loan loss provision coverage ratio reached 74.8%. These indicators contribute to enhancing overall financial stability and demonstrate banks’ ability to effectively address future economic challenges.

Al-Sharkas emphasized that Jordan’s economy has the potential for higher growth in the future, supported by major strategic projects that the government is committed to implementing over the coming years and by a comprehensive roadmap for reform and modernization leading up to 2033, as outlined in the Economic Modernization Vision.

He added: “Over the past five years, starting from the COVID-19 pandemic and the subsequent external economic shocks, our national economy has demonstrated exceptional resilience in overcoming challenges. Its high adaptability has allowed it to mitigate these impacts, thanks to the intensive economic and financial reforms carried out in recent years, along with sound monetary, fiscal, and economic policies. The private sector has played a vital role in sustaining stability and economic growth, serving as a cornerstone of Jordan’s long-term economic resilience.”

The launch ceremony of the initiative was attended by the Minister of Public Works and Housing, the Minister of State for Economic Affairs, the Minister of Education, the Minister of Higher Education and Scientific Research, and the Minister of Investment, along with a number of chairpersons, general managers, and executives of Jordanian banks.