Banking Knowledge Center
Explore our verified library of Banking transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Current Account Opened — Customer Deposit
Recording cash deposited by a new retail customer opening a current (demand) account.
Savings Account Deposit Received
A customer deposits cash into an interest-bearing savings account.
Fixed / Term Deposit Placed by Customer
A customer locks JOD 50,000 in a 12-month fixed deposit at 4% per annum.
Monthly Interest Accrual on Customer Deposits
Accruing the monthly interest cost on all fixed and savings deposits outstanding.
Fixed Deposit Interest Paid at Maturity
Paying the accumulated interest to a customer whose 12-month fixed deposit has matured.
Premature Fixed Deposit Break — Penalty Income
A customer breaks their fixed deposit early, incurring a penalty charged by the bank.
Certificate of Deposit (CD) Issued
The bank issues a negotiable Certificate of Deposit to a large institutional investor.
Retail Loan Disbursed to Customer
Disbursing a personal loan to a retail customer.
Corporate Term Loan Disbursed
Funding a JOD 2 million corporate term loan to a manufacturing company.
Loan Origination Fee — Deferred (EIR Method)
Collecting an upfront loan processing fee that must be deferred under the Effective Interest Rate method.
Loan Origination Fee — Monthly Amortization
Amortizing the deferred origination fee into interest income each month.
Syndicated Loan — Bank's Participation
The bank joins a syndicate, taking a 25% share of a JOD 20 million facility.
Revolving Credit Facility — Customer Drawdown
A corporate customer draws JOD 500,000 from their approved JOD 2 million RCF.
Customer Overdraft Utilization
A business customer's current account goes overdrawn within their approved limit.
Interest Income Accrual — Performing Loan
Accruing monthly interest on a current (Stage 1) loan that is paying on time.
Interest Income — Non-Performing Loan (Cash Basis)
Stopping accrual of interest on a loan classified as non-performing (Stage 3).
Interest Expense on Customer Deposits
Accruing the monthly cost of interest payable on all deposit products.
Interest Expense on Interbank Borrowing
Accruing interest on short-term funds borrowed from another bank in the interbank market.
Interest in Suspense — NPL Transfer
Transferring previously accrued interest to suspense when a loan becomes non-performing.
ECL Stage 1 — 12-Month Expected Credit Loss Provision
Provisioning for performing loans (Stage 1) using a 12-month probability of default.
ECL Stage 2 — Lifetime ECL (Significant Credit Risk Increase)
Increasing provision to lifetime ECL when a loan shows significant deterioration in credit quality.
ECL Stage 3 — Credit-Impaired Loan Provision
Provisioning at full lifetime ECL for a loan that is objectively credit-impaired (NPL).
ECL Provision Release — Loan Upgraded to Better Stage
Releasing part of the ECL provision when a previously impaired loan improves and moves back to Stage 2 or Stage 1.
Loan Write-Off — Fully Impaired
Writing off a loan that is 100% provisioned and deemed unrecoverable.
Partial Write-Off of Impaired Loan
Writing off the unsecured portion of a partially collateralized NPL.
Recovery of Previously Written-Off Loan
Cash received from a borrower whose loan was fully written off in a prior period.
Letter of Credit Issued — Contingent Liability
The bank issues an import LC on behalf of a customer — commitment recorded off-balance sheet.
LC Cash Margin Collected from Customer
Blocking a cash margin from the customer's account as collateral for issuing an LC.
LC Commission Income
Recording the issuance fee and confirmation fee charged for opening the LC.
LC Settlement — Payment to Beneficiary Bank
The bank pays the beneficiary's bank when conforming documents are presented under the LC.
Bank Guarantee (LG) Issued
Issuing a performance guarantee for a contractor client participating in a government tender.
Bank Guarantee Commission Income
Earning the quarterly commission for maintaining an outstanding performance guarantee.
Documentary Collection Fee
Earning a fee for handling import documents and collecting payment from the buyer's bank.
FX Spot Trade — Buy USD (Bank's Trading Book)
The bank's treasury desk buys USD 1 million at the spot rate of 0.709.
FX Spot Trade — Sell USD (Customer Transaction)
A customer sells USD 50,000 to the bank at the bank's buying rate.
FX Forward Contract — Fair Value Movement
Revaluing an outstanding FX forward contract at month-end based on current forward rates.
Trading Securities — Fair Value Gain
Revaluing the bank's trading bond/equity portfolio upward at month-end.
AFS / FVOCI Securities — Fair Value Change (OCI)
Revaluing the bank's Available-for-Sale bond portfolio, with the gain going to Other Comprehensive Income.
Held-to-Maturity Bond — Premium / Discount Amortization
Monthly amortization of the discount on a government bond held at amortized cost.
Repo Agreement — Securities Sold Under Repo
The bank raises short-term funding by selling government bonds with an agreement to repurchase.
ATM Interchange Fee Income
Earning interchange fees when another bank's customers use the bank's ATM network.
Credit / Debit Card Annual Fee
Charging the annual card fee to a customer's account.
Wire Transfer / SWIFT Fee
Charging a customer for an outgoing international wire transfer.
Monthly Account Maintenance Fee
Charging a monthly service fee on accounts that fall below the minimum balance.
Safe Custody / Custodian Fee
Charging an annual fee for safekeeping and administering a customer's securities portfolio.
Investment Management / Advisory Fee
Earning a quarterly management fee on assets under management (AUM).
Tier 1 Capital — New Share Issuance
The bank issues new common shares to strengthen its regulatory capital position.
Mandatory Reserve Deposit — Central Bank (CBJ)
Transferring the required cash reserve ratio to the Central Bank of Jordan.
Transfer to Statutory Loan Loss Reserve
Transferring a percentage of net profit to the statutory loan loss reserve as required by CBJ regulations.
Dividend Declaration — Bank Shareholders
The board approves a cash dividend subject to CBJ approval.
Subordinated Debt Issued (Tier 2 Capital)
The bank issues subordinated bonds to institutional investors to strengthen Tier 2 capital.
Rights Issue — Proceeds from Existing Shareholders
Existing shareholders exercise their rights to purchase new shares at a discount.
Notice Deposit (Call Money) Placed
Recording a large depositor placing funds in a notice account requiring 7-30 days notice for withdrawal.
Interbank Deposit Placed (Surplus Liquidity)
Placing excess overnight or short-term funds with another bank in the interbank market.
Interbank Deposit Received (Funding)
Borrowing from another bank overnight to fund end-of-day settlement requirements.
Fixed Deposit Rollover at Maturity
A maturing fixed deposit is automatically renewed for another 12 months at the current rate.
Foreign Currency Deposit Opened (USD Account)
A customer opens a USD savings account and deposits $10,000.
Foreign Currency Deposit — Month-End FX Revaluation
Revaluing USD deposit liabilities to JOD at the month-end closing spot rate.
Home Mortgage Loan — Disbursement
Disbursing a 20-year mortgage to a retail customer purchasing an apartment.
Home Mortgage — Monthly Principal + Interest Collection
Collecting the monthly mortgage installment from the borrower.
Auto Loan Disbursement
Funding a 5-year vehicle loan with payment going directly to the dealership.
Personal Loan — Monthly Installment Collected
Collecting a scheduled monthly installment on an unsecured personal loan.
Credit Card Limit Granted — Off-Balance Sheet
Approving and issuing a JOD 5,000 credit card limit to a qualified customer.
Credit Card Purchase — Billed to Cardholder
A cardholder's purchases during the billing cycle are posted to their card account.
Credit Card Payment Received
A cardholder pays their monthly statement balance in full.
Credit Card Overlimit Fee Charged
Charging a fee when a cardholder's balance exceeds their approved credit limit.
Credit Card Late Payment Fee
Charging a penalty fee when the minimum payment is not received by the due date.
Credit Card Cashback / Rewards Points Accrual
Accruing the liability for cashback and rewards earned by cardholders on their spending.
Consumer Loan — Early Repayment Penalty
Collecting a penalty when a borrower repays a personal loan before its scheduled maturity.
Loan Restructuring — IFRS 9 Modification Gain/Loss
Restructuring a distressed borrower's loan with extended tenor and reduced installments.
Corporate Term Loan — Quarterly Repayment
Collecting the quarterly principal repayment plus interest on a corporate term loan.
Corporate Term Loan — Bullet Repayment at Maturity
Receiving full repayment of principal when a bullet (non-amortizing) corporate loan matures.
Project Finance — Construction Drawdown
Funding a tranche of a project finance facility against certified construction progress.
Working Capital Facility — Annual Renewal Fee
Earning a renewal fee when a corporate overdraft facility is renewed for another year.
Invoice Discounting / Supply Chain Finance
Purchasing a corporate supplier's invoices at a discount to provide early payment.
Watch List — Stage 2 SICR Trigger
Moving a borrower to the watch list following a Significant Increase in Credit Risk.
Debt-to-Equity Swap — NPL Converted to Shares
Converting a large non-performing corporate loan into equity shares of the borrower company.
Foreclosure — Collateral Property Taken Over
Taking possession of mortgaged property after a borrower defaults and legal proceedings complete.
OREO (Foreclosed Property) — Monthly Depreciation
Recording depreciation on a commercial building held as Other Real Estate Owned.
OREO Sold — Gain on Disposal
Selling a foreclosed commercial property above its carrying (book) value.
NPL Debt Restructuring — Principal Haircut
Accepting a reduction in principal owed as part of an NPL workout agreement.
Murabaha — Bank Purchases Asset from Supplier
An Islamic bank purchases goods from a supplier on behalf of a customer under Murabaha.
Murabaha — Sale to Customer at Cost Plus Markup
Selling the Murabaha asset to the customer at cost plus the agreed profit margin.
Murabaha Installment Collected
Collecting a monthly Murabaha installment from the customer.
Ijara — Bank Purchases Asset for Leasing
An Islamic bank purchases a vehicle to lease to a customer under an Ijara arrangement.
Ijara — Monthly Rental Income
Collecting the monthly rental payment from the lessee under an Islamic lease.
Ijara Asset — Monthly Depreciation
Depreciating the leased asset held on the bank's balance sheet under an Ijara arrangement.
Ijara Muntahia Bittamleek — Title Transfer at End
Transferring ownership of the leased asset to the customer at the end of the Ijara term.
Musharaka — Bank's Capital Contribution
An Islamic bank contributes capital to a joint venture with a customer under Musharaka.
Musharaka — Bank's Share of Profit
Receiving the bank's agreed share of Musharaka profits at the quarterly distribution.
Sukuk Investment — Purchased
Purchasing a sovereign or corporate Sukuk for the investment portfolio.
Sukuk — Periodic Profit Payment Received
Receiving the periodic profit distribution on a held Sukuk instrument.
Diminishing Musharaka — Customer Buys Bank's Unit
The customer purchases a unit of the jointly owned property from the bank, reducing the bank's share.
Export LC — Advising Fee Income
Earning a fee for advising (authenticating and transmitting) a foreign LC to the beneficiary.
Export LC — Negotiation / Discounting
The bank pays the exporter immediately against conforming documents, before receiving payment from the issuing bank.
Standby Letter of Credit (SBLC) Issued
Issuing a standby LC as a payment guarantee for a customer's performance obligation.
Banker's Acceptance — Bill of Exchange Accepted
The bank accepts (guarantees payment on) a trade bill, creating a banker's acceptance.
Central Bank Bills (CBJ Bills) Purchased
Purchasing short-term Central Bank of Jordan bills for liquidity management.
Government Bond — Coupon Received
Collecting the semi-annual coupon on Jordanian government bonds held in the portfolio.
Interest Rate Swap — Fair Value Movement
Revaluing an interest rate swap used to convert fixed-rate loan income to floating.
Cross-Currency Swap — Fair Value (Cash Flow Hedge)
Revaluing a USD/JOD cross-currency swap used to hedge foreign currency bond issuance.
Nostro Account Reconciliation — In-Transit Item
Adjusting the books for items in transit between the bank and its correspondent bank.
Overnight Interbank Lending (Money Market)
Lending JOD 50 million overnight to another bank at the interbank offered rate.
Reverse Repo — Securities Purchased Under Repo
The bank lends cash and receives government securities as collateral in a reverse repo.
Card Interchange Income — Issuer Revenue
Earning interchange income when a cardholder makes a purchase at a merchant.
Merchant Acquiring Fee Income
Earning merchant discount fees from businesses accepting card payments via the bank's POS terminals.
Card Scheme Assessment Fee Paid (Visa / Mastercard)
Paying quarterly assessment fees to Visa or Mastercard for participation in their payment network.
Card Chargeback — Dispute Processed
Processing a cardholder dispute that results in reversing the original transaction.
Card Fraud Loss — Write-Off
Writing off a fraudulent card transaction that cannot be recovered from the merchant.
Cash Vault — Physical Count Overage
Adjusting for extra cash found during the end-of-day vault count.
Cash Vault — Shortage Write-Off
Writing off a cash shortage discovered during the daily vault count.
Cheque Clearing — Presented for Payment
Presenting a cheque received from a customer for clearing through the national clearing system.
Cheque Returned — Insufficient Funds (NSF)
Reversing the clearing entry when a cheque is returned unpaid due to insufficient funds.
Outward Remittance — Fee Income
Charging a fee for sending an international money transfer on behalf of a customer.
Inward Remittance — Corridor Fee Earned
Earning a commission on inward remittances received from overseas correspondents.
Loan Commitment Fee Income
Earning a quarterly fee on the undrawn portion of an approved revolving credit facility.
Arrangement / Syndication Fee Income
Earning an upfront fee for arranging and underwriting a syndicated loan facility.
Agency Fee — Syndicated Loan Administration
Earning an annual fee for administering a syndicated loan on behalf of the lender group.
Collective ECL — Portfolio-Level Provision
Calculating and recording the collective ECL provision on the entire performing loan portfolio.
ECL Macro-Economic Overlay Provision
Adding a management overlay to model-calculated ECL for current macro-economic conditions.
NPL Portfolio Sold to Debt Collector
Selling a portfolio of written-off loans to a third-party debt collection company.
Collateral Revaluation — Property Value Decline
Increasing ECL provision after a property held as collateral declines in market value.
Government Guaranteed Loan — Zero ECL
Releasing ECL provision on a loan fully guaranteed by the Jordan government.
Branch Staff Monthly Payroll (Gross)
Recording the monthly gross payroll for tellers, relationship managers, and branch supervisors.
EOSB Monthly Provision — Bank Staff (Jordan)
Accruing the end-of-service benefit for Jordanian bank employees.
SSC Employer Contribution — Bank Staff (Jordan)
Recording the 14.25% employer SSC contribution for bank employees.
Corporate Income Tax Provision
Accruing the annual income tax on the bank's taxable profit.
Deferred Tax Asset — Collective Loan Provisions
Recognizing a deferred tax asset for Stage 1/2 ECL provisions not yet tax-deductible.
Withholding Tax on Customer Deposit Interest
Deducting withholding tax from interest paid to individual depositors and remitting to the ISTD.
CBJ Annual Supervision / Inspection Fee
Paying the annual supervision fee charged by the Central Bank of Jordan.
Core Banking System — Annual License / Subscription
Paying the annual fee for the core banking platform (Temenos, Oracle FLEXCUBE, etc.).
Branch Fit-Out — Leasehold Improvement
Capitalizing the cost of fitting out a new branch premises (counters, security, ATMs, fit-out).
ATM Machine — Purchase and Depreciation Setup
Purchasing ATM machines for branch and off-site deployment.
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