International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss


The Effects of Corporate Governance Requirements on Jordan Banking Sector
Shamsi S. Bawaneh

This study seeks to understand how Jordan banking sector is affected by the Corporate Governance (CG) requirements released by Basle Committee on Banking Supervision (BCBS) and Organization for Economic Cooperation and Development (OECD). The study reveals that Jordan Banking Sector has been paying CG a great deal of attention. Therefore, the Central Bank of Jordan (CBJ) issued Bank Directors Handbook of CG which has been developed with the objective of enhancing the CG of Jordanian banks. Further to issuing the Handbook, the CBJ is continuing its efforts to enhance CG by preparing the CG Code which is intended to promote international best practice in the CG of Jordanian Banks, and asked each bank to keep this code under review and be developed and amended as required from time to time to meet the changing needs and expectations of the bank and the marketplace. As a result, banks in Jordan comply with CG requirements by acting in accordance with a request from the CBJ based on BCBS and OECD guidelines and requirements which enhance the CG procedures. Therefore, CG continues to gain attention and importance from parties concerned in Jordan but many steps need to be done in the future.

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