Khaberni - Fitch Ratings confirmed that the Jordanian banking sector enters 2026 with good levels of financial stability, supported by the solidity of capital, ample liquidity, and a stable local deposit base, despite surrounding regional and economic challenges, according to a Fitch report that monitors banking sector prospects in the Middle East, obtained by the Kingdom.
Fitch projected that the Jordanian economy would achieve a real growth of 2.8% during 2026, providing a supportive environment for the continuous banking activity and moderate expansion in lending, with the banks maintaining a cautious and balanced approach in risk management.
The agency pointed out that financing and liquidity in the Jordanian banking sector are at comfortable levels, supported by a diverse and stable deposit base, alongside effective liquidity management, enhancing the banks' ability to cope with fluctuations and maintain their financial stability.
In terms of asset quality, Fitch confirmed that pressures remain limited and manageable, benefiting from the proactive supervisory policies implemented by the Central Bank of Jordan, including updated loan classification instructions, which enhance transparency and flexibility in managing credit risks.
The agency also expected the profitability of Jordanian banks to remain strong pre-provisions, enabling them to absorb any potential increases in risk costs without affecting capital adequacy, at a time when banks continue to invest in digital transformation and developing banking services.
Fitch confirmed that capital adequacy ratios in Jordanian banks are sufficient and stable, with a high reliance on Common Equity Tier 1 (CET1), which enhances the capacity to absorb losses and supports the sector's robustness in the medium term.
