Legal frameworks for Implementing Basel Principles III in the Banking Sector in Jordan

Abstract

The research dealt with the legal frameworks for applying Basel III principles in the banking sector in Jordan, where the focus was on clarifying the principles established by the Basel III Committee and the extent of Jordanian banks’ commitment to implementing them through the corporate governance instructions for Jordanian banks issued by the Central Bank of Jordan and amended in 2023. The importance of the research lies in determining the extent of compatibility of these instructions with the principles of Basel III, the result we reached was that corporate governance instructions were issued to be consistent with the principles of Basel III. Thus, the Central Bank of Jordan contributed effectively to applying international standards to the Jordanian banking sector, and the study recommended modernizing the banking system completely to reach To the highest level of application of Basel III principles, by supporting all principles related to corporate governance within banks by activating their constituent elements, and issuing a special law for corporate governance in addition to the instructions of the Central Bank.