BENEFITS OF JMRC
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Visitors No.
visitors
Benefits of Dealing with JMRC
1 - Benefits of Borrowing from JMRC

Refinance by JMRC provides banks and financial institutions with the following benefits:

  • Help the bank to improve its assets and liabilities management, through better matching of sources and uses of its funds (ALM).

  • Enable the bank to avoid interest rates risks (IRR) on mortgage loans.

  • Enable the bank to allocate more funds to be granted for housing loans as the housing loans refinanced by JMRC's are excluded from the loans granted for construction and purchase of real estates upon calculating the percentage determined under the Banks Law, which provides that the loans granted for construction and purchase of real estates purposes shall not exceed 20% from the total bank’s deposits in Jordanian dinar.

  • The bank is exempted to allocate provision for the general banking risks for housing loans refinanced by JMRC.

  • Improve the capital adequacy ratio as JMRC's loans are risk weighted at 20% on housing loans granted by the bank, not exceeding the refinance loans amounts borrowed from JMRC.
 
2- Benefits Of Investing In JMRC's Bonds
 

  • Interests derived from JMRC's bonds and profits generated from investment in these bonds are exempted from taxation in accordance with the percentage indicated in the Income Tax Law.

  • JMRC's bonds are risk-weighted at (20%) for the purpose of calculating the capital adequacy ratios of banks.

  • JMRC's bonds have priority in repayment over its obligations resulting from the loan granted to it by the Government.

  • JMRC's bonds are eligible to serve as liquidity reserve holding of banks for the purpose of calculating the legal liquidity ratios as required by the Central Bank of Jordan.

  • JMRC's bonds are tradable in the local capital market.