Deputy Governor of the Central Bank of Jordan, Ziyad Ghanama, affirmed the strength of the Jordanian banking system and the bank’s supervisory and preventive measures that contributed to maintaining monetary stability.

And he indicated during a working session organized by the Jordanian Businessmen Association yesterday evening, in cooperation with the National Portfolio Company for Securities, that the Jordanian banking sector, despite the difficult economic conditions, managed to maintain its stability and good credit ratings, whether global or internal, of the Central Bank and its instructions.

During the session titled “The Impact of the Collapse of Some American Banks on the Jordanian and Global Economy,” Ghanama indicated that the Central Bank is keen to reassure the private sector, to play its role, and to activate its various instructions and procedures to maintain the stability of the banking sector in cooperation with various regulatory authorities as an integrated system aimed at maintaining stability. Prudential cash control.

In turn, a member of the Securities Commission’s Board of Commissioners, Dr. Adel Bino, said that what resulted from a crisis in a number of US banks was due to several factors, the most important of which were high interest rates, the cost of lending, inflation and mismanagement, pointing out that the crisis was not due to liquidity problems.

And he indicated that the Securities Commission is interested in disclosure through its supervisory role and in line with international accounting standards and in a way that reflects its true values ​​and the violation of companies that do not adhere to disclosure.

Pino pointed out that each country has characteristics that distinguish it, and the Jordanian economy has many means and measures that can be taken to protect the banking sector in the event of any unexpected effects as a result of the current crisis.

For his part, economist Zian Zawaneh pointed out that the American economy since 1907 is considered the source of financial crises due to the nature of the free economy that it adopts, stressing the existence of a state of uncertainty about the future consequences of the effects of the crisis resulting from the collapse of a number of American banks.

And he indicated that the US Federal Reserve has been trying since 2018 to withdraw the cash liquidity that it pumped into the markets to deal with previous crises, which despite its difficulties, the capitalist system in the United States has a great ability to overcome, but the re-injection of liquidity again resulted in inflationary effects. .

In turn, the banking and financial expert, Dr. Adly Qandah, stated that the current crisis is classified as a banking crisis as a result of the acute demand for deposits, and this crisis is still continuing, pointing out that one of the banks that collapsed has an estimated assets of about $212 billion.

He added that the state of panic, which raised fears, resulted in the tendency to withdraw deposits, which amounted in one day to about $42 billion.

Dr. Kandah pointed out that the Jordanian banking system enjoys solidity and monetary stability. The volume of assets of the banking sector during the year 2022 amounted to about 64.1 billion dinars, of which local assets accounted for about 58.3 billion dinars, and foreign assets accounted for about 5.9 billion dinars.

Haifa Al-Alami, General Manager of the National Portfolio Company for Securities, said that the session came to discuss the crisis caused by the collapse of a number of American banks and its expected effects, which are among the largest economies in the world.

And she indicated that the session in which economists and bankers participated was the extent to which the banking system in Jordan was affected in light of the current difficult economic conditions, especially that the world has not yet recovered from the Corona crisis, and that the war between Russia and Ukraine greatly affected various countries and at all levels.

Al-Alami, who moderated the session, pointed out that unemployment and poverty indicators have exacerbated over the past years, with greater reliance on the capitalist system, which has made countries more vulnerable to financial crises than before.