Jordan's microfinance sector has been growing strongly in recent years but has been neglected by regulators, thus comprising significant stability risks. After having conducted a sector assessment, the Central Bank of Jordan (CBJ) concluded to take over a leading role in both regulating and supervising the microfinance sector. Beginning from Q1/2015, the European Union (EU) supports the implementation of the Jordan National Microfinance Policy Framework with a Sector Reform Contract, targeting, amongst others, at the strengthening of the regulation and supervision of the microfinance sector. The EU Action, the management of which is delegated to GIZ, includes technical assistance and legal advice for the CBJ in the areas of regulation and supervision of microfinance institutions (MFIs) in order to develop its organizational and institutional capacity in this regard.
The objective of the project is to improve the on-site supervision of the microfinance sector in Jordan.
Services provided include:
- Draft on-site supervision manual.
- Design microfinance reporting format.
- Class training Central Bank of Jordan staff on microfinance onsite supervision
- Field based training / coaching Central Bank of Jordan staff on on-site supervision
- Pilot CBJ inspection exercise in one of the Jordanian MFIs
- Central Bank of Jordan delegation exposure visit to Lithuania