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
Recording a cash or cheque deposit into an existing retail savings account.
Fixed-Term Deposit Placed by Customer
A customer transfers funds from their current account into a new 3-month fixed deposit.
Interest Accrual on Customer Deposits (Month-End)
Accruing interest expense on savings and fixed-term deposits at the month-end.
Deposit Interest Paid at Maturity
Settling accrued interest when a fixed deposit matures and the customer receives their interest.
Premature Fixed Deposit Break — Penalty Applied
Customer breaks a 6-month fixed deposit after 2 months; bank applies an early withdrawal penalty.
Certificate of Deposit Issued
Bank issues a negotiable Certificate of Deposit (CD) to a wholesale investor.
Retail Personal Loan Disbursed
Disbursing a personal loan to a retail customer, net of origination fee.
Corporate Loan Disbursed
Disbursing a term loan to a corporate borrower after drawdown conditions are met.
Loan Origination Fee — EIR Setup at Disbursement
Establishing the deferred origination fee as part of the amortized cost calculation under IFRS 9.
Loan Origination Fee — Monthly EIR Amortization
Releasing a portion of the deferred origination fee as interest income each month.
Syndicated Loan — Bank's Participation Share
Recording the bank's share of a syndicated term loan where another bank acts as agent.
Revolving Credit Facility — Customer Drawdown
A corporate customer draws down on an approved revolving credit facility.
Overdraft Facility — Customer Draws Below Zero
A business customer's account goes into overdraft within an approved limit.
Interest Income Accrual — Performing Loan (Stage 1/2)
Accruing monthly interest income on a performing corporate loan at the contractual rate.
Interest Income — Non-Performing Loan (Cash Basis)
Recognizing interest on a Stage 3 (credit-impaired) loan only when cash is actually received.
Interest Expense — Customer Deposits (Month-End)
Accruing interest expense on all deposit accounts at month-end.
Interest Expense — Interbank Borrowing
Accruing interest on overnight or short-term funds borrowed from another bank.
Interest in Suspense — NPL Transfer
Transferring previously accrued interest to a suspense account when a loan becomes non-performing.
Expected Credit Loss — Stage 1 (12-Month ECL)
Recording the 12-month ECL provision on a performing loan portfolio.
Expected Credit Loss — Stage 2 (Lifetime ECL)
Increasing provision to lifetime ECL when a loan experiences significant increase in credit risk.
Expected Credit Loss — Stage 3 (Credit-Impaired)
Full impairment provision on a credit-impaired (NPL) loan based on lifetime ECL assessment.
ECL Provision Release — Loan Upgraded to Stage 1
Releasing excess provision when a previously impaired loan is restructured and reclassified back to performing.
Loan Write-Off — Fully Impaired (100% Provision)
Writing off a loan where recovery is deemed remote and the provision covers the full balance.
Loan Partial Write-Off
Writing off the unsecured portion of an NPL while retaining the collateral-covered balance.
Cash Recovery on Previously Written-Off Loan
Receiving unexpected payment on a loan that was fully written off in a prior period.
Letter of Credit Issued — Contingent Liability
Issuing a documentary letter of credit on behalf of an import customer — off-balance-sheet contingent.
LC Cash Margin Collected from Customer
Collecting a 20% cash margin from the importer before issuing the letter of credit.
LC Commission and Charges Income
Recognizing commission earned for issuing a letter of credit.
LC Settlement — Documents Presented and Paid
Settling the LC by paying the beneficiary (exporter's bank) after compliant documents are received.
Bank Guarantee Issued — Off-Balance-Sheet
Issuing a performance or payment guarantee on behalf of a corporate customer.
Bank Guarantee Commission Income
Recognizing quarterly commission earned for maintaining a bank guarantee.
Documentary Collection Fee Income
Earning fee income for processing an inward documentary collection (import documents on approval).
FX Spot Transaction — Bank Buys USD from Customer
A corporate customer sells USD to the bank at the spot rate; bank receives USD and pays JOD.
FX Spot Transaction — Bank Sells USD to Customer
A corporate customer buys USD from the bank at the spot ask rate.
FX Forward Contract — Fair Value at Month-End
Marking to market an outstanding FX forward contract at the period-end.
Trading Securities — Fair Value Gain (FVTPL)
Recognizing an unrealized gain on government bonds held in the trading portfolio.
FVOCI Securities (Former AFS) — Unrealized Gain in OCI
Recognizing a fair value gain on debt securities designated at FVOCI.
Held-to-Maturity Bond — EIR Amortization
Amortizing the discount/premium on an HTM (amortized cost) government bond using EIR method.
Repo Transaction — Securities Sold Under Repurchase Agreement
Bank sells government bonds with an agreement to repurchase them at a higher price — using securities as collateral for short-term funding.
ATM Interchange Fee Income — Other Bank's Customers
Earning interchange fee when another bank's cardholder uses the bank's ATM.
Credit/Debit Card Annual Membership Fee
Charging a cardholder the annual card membership fee.
Wire Transfer (SWIFT) Fee Income
Charging a customer for an outward SWIFT wire transfer.
Account Maintenance Fee (Monthly Service Charge)
Charging a monthly service fee for maintaining a corporate current account.
Safe Custody / Safety Deposit Box Fee
Charging an annual safe custody fee for holding securities or valuables for a customer.
Investment Management / Wealth Advisory Fee
Charging a quarterly portfolio management fee to a private banking customer.
Common Equity Tier 1 Capital — New Share Issuance
Issuing new ordinary shares to existing shareholders to strengthen CET1 capital.
CBJ Mandatory Reserve Requirement Maintained
Maintaining the mandatory reserve deposit at the Central Bank of Jordan.
Transfer to Statutory Loan Loss Reserve (Appropriation)
Appropriating a portion of profit to a statutory/regulatory loan loss reserve as required by CBJ.
Dividend Declaration — Board Approved
Recording the board's declaration of an annual cash dividend to shareholders.
Subordinated Debt Issuance (Tier 2 Capital)
Issuing subordinated bonds qualifying as Tier 2 regulatory capital under Basel III.
Rights Issue — Proceeds Received from Shareholders
Receiving payment from existing shareholders exercising their rights to purchase new shares.
Call Money / Notice Deposit Placed (Asset)
Bank places short-term funds in call money with another bank overnight.
Interbank Deposit Placed (Short-Term Lending)
Bank places a 1-month deposit with another bank at a fixed rate.
Interbank Deposit Received (Short-Term Borrowing)
Bank receives a 1-month deposit from another bank as a short-term funding source.
Fixed Deposit Rollover at Maturity
A fixed deposit matures and the customer instructs the bank to roll over the principal for a new term.
Foreign Currency Deposit Account Opened (USD)
A customer opens a USD savings account and deposits USD 10,000.
Foreign Currency Deposit — Month-End Revaluation
Revaluing USD deposit liabilities at the month-end CBJ official exchange rate.
Home Mortgage Loan Disbursed
Disbursing a 20-year home mortgage to a retail customer after property registration.
Mortgage Monthly Repayment — Principal and Interest Split
Processing a monthly mortgage installment, splitting between interest income and principal reduction.
Auto Loan Disbursement (Retail Vehicles)
Disbursing a 3-year auto loan directly to a car dealer on behalf of a retail customer.
Personal Loan Installment Collected
Collecting a monthly installment on a personal (unsecured) loan via direct debit from salary account.
Credit Card Facility — Limit Approval (Off-Balance-Sheet)
Approving and recording an undrawn credit card limit as an off-balance-sheet commitment.
Credit Card Purchase — Transaction Billed to Cardholder
Recording a cardholder's retail purchase on their credit card.
Credit Card Payment Received from Cardholder
Cardholder makes a full payment of their monthly credit card statement balance.
Credit Card Over-Limit Fee Charged
Charging a fee when a cardholder exceeds their approved credit limit.
Credit Card Late Payment Fee Charged
Charging a late fee when minimum payment is not received by the due date.
Credit Card Cashback Reward Accrual
Accruing cashback rewards earned by cardholders on eligible purchases.
Consumer Loan Prepayment Penalty Income
Charging a prepayment penalty when a customer fully repays a personal loan before maturity.
Loan Restructuring — IFRS 9 Modification Assessment
Restructuring a distressed corporate loan — extending tenor and reducing interest rate — and assessing whether it is a substantial modification.
Term Loan Scheduled Principal Repayment
Receiving a scheduled quarterly principal repayment on a corporate term loan.
Term Loan Bullet Repayment at Maturity
Full repayment of a bullet (interest-only) term loan at its final maturity date.
Project Finance — Construction Phase Drawdown
Processing a drawdown on a project finance facility for infrastructure construction.
Working Capital Facility Annual Renewal Fee
Charging a renewal fee when a corporate working capital (overdraft/revolving) facility is renewed for another year.
Invoice Discounting / Supply Chain Finance
Advancing funds to a supplier by purchasing their receivable from the corporate anchor buyer at a discount.
Loan Watch-Listed — Stage 2 SICR Trigger
Moving a loan to Stage 2 based on qualitative deterioration signals before 30 DPD is reached.
Debt-Equity Swap — NPL Converted to Equity Stake
Converting a non-performing corporate loan into equity shares in the borrower company.
Collateral Foreclosure — Property Taken in Lieu of Debt
Taking ownership of pledged property after foreclosure proceedings against an NPL borrower.
OREO — Depreciation / Impairment Charge
Recording impairment or depreciation on real estate owned by the bank following foreclosure.
OREO Sold — Gain on Disposal
Selling a foreclosed property at a price above its carrying amount.
NPL Debt Restructure — Principal Haircut (Forgiveness)
Agreeing to forgive a portion of principal as part of a formal debt restructuring for an NPL corporate borrower.
Murabaha — Bank Purchases Asset (Islamic Finance)
Bank purchases a commodity or asset from a supplier to sell it to the customer at a markup under a Murabaha contract.
Murabaha — Asset Sold to Customer at Cost-Plus Markup
Bank sells the purchased asset to the customer at cost plus an agreed profit margin under the Murabaha contract.
Murabaha Installment Collected
Collecting a monthly Murabaha installment from the customer.
Ijara — Bank Purchases Asset to Lease to Customer
Bank purchases equipment to lease to a customer under an Ijara (Islamic leasing) contract.
Ijara Monthly Rental Income Collected
Collecting monthly rental payment from a lessee under an Ijara contract.
Ijara Asset — Monthly Depreciation
Depreciating a bank-owned Ijara asset over its economic life.
Ijara Muntahia — Asset Title Transferred to Lessee at End of Lease
Transferring ownership of the leased asset to the lessee at a nominal price at lease end.
Musharaka — Bank's Capital Contribution
Bank contributes capital to a joint venture business under a Musharaka (partnership) structure.
Musharaka Profit Distribution Received
Receiving the bank's share of profit from a Musharaka venture.
Sukuk Investment Purchased
Bank purchases government or corporate Sukuk (Islamic bonds) for its investment portfolio.
Sukuk Periodic Profit Payment Received
Receiving a semi-annual profit payment (equivalent to a coupon) on a held Sukuk investment.
Diminishing Musharaka — Customer Purchases a Unit from Bank
In a Diminishing Musharaka (home finance), the customer buys one unit of ownership from the bank, reducing the bank's share.
Export LC — Advising Fee Income
Earning an advising fee for notifying the beneficiary (exporter) that a foreign bank has issued an LC in their favor.
Export LC — Negotiation (Purchase of Documents)
Bank negotiates an export LC by purchasing compliant documents from the exporter and advancing funds before the issuing bank pays.
Standby Letter of Credit Issued
Issuing a standby LC that functions as a guarantee — payable only if the applicant fails to perform.
Bill of Exchange — Bank Acceptance
Bank accepts a bill of exchange drawn on it, creating a contingent payment obligation.
CBJ Bills Purchased (Open Market Operations)
Bank purchases CBJ Treasury Bills / Certificates of Deposit in the primary market.
Government Bond Coupon Received
Receiving a semi-annual coupon payment on a Jordanian government bond held in the investment portfolio.
Interest Rate Swap — Fair Value at Month-End
Marking to market a pay-fixed, receive-floating interest rate swap used to hedge a fixed-rate loan portfolio.
Cross-Currency Swap — Fair Value at Month-End
Marking to market a cross-currency swap used to convert USD bond funding into JOD.
Nostro Account Reconciliation Adjustment
Correcting an open item in the nostro account identified during the monthly reconciliation.
Overnight Interbank Lending (Money Market)
Lending excess liquidity overnight to another Jordanian bank at the JOIBOR rate.
Reverse Repo — Securities Purchased Under Resale Agreement
Bank provides cash to a counterparty receiving government bonds as collateral, with agreement to resell them.
Card Interchange Income — Issuing Bank Receives from Acquirer
Recording the interchange fee received from the acquiring bank for a cardholder purchase transaction.
Merchant Acquiring Fee (Merchant Discount Rate) Income
Earning the merchant discount rate (MDR) from a merchant whose POS terminal is managed by the bank.
Card Scheme Fees Paid (Visa / Mastercard / JONET)
Recording monthly card scheme fees paid to Visa, Mastercard, or JONET for card network services.
Chargeback Processed — Cardholder Dispute Upheld
Processing a chargeback where the cardholder's dispute against a merchant transaction was upheld.
Card Fraud Loss — Unrecovered Unauthorized Transaction
Writing off a fraudulent card transaction that cannot be recovered from the merchant or acquiring bank.
Cash Vault Overage — Count Exceeds Ledger
Recording an overage discovered during a cash vault count where physical cash exceeds the ledger balance.
Cash Vault Shortage — Count Below Ledger
Recording a shortage discovered during a teller drawer count.
Cheque Presented for Clearing — Outward
A customer deposits a cheque drawn on another bank; the amount is credited pending clearance.
Cheque Returned — Insufficient Funds (NSF)
Processing a returned cheque where the paying bank has rejected it due to insufficient funds in the drawer's account.
Outward Remittance Fee (Retail Transfer Abroad)
Charging a fee for processing a retail customer's international money transfer.
Inward Remittance — Corridor Fee / Conversion Income
Recording an inward remittance from abroad and earning a currency conversion spread.
Loan Commitment Fee (Undrawn Facility)
Charging a commitment fee on the undrawn portion of an approved credit facility.
Arrangement / Syndication Fee Received (Lead Arranger)
Receiving a one-time arrangement fee for structuring and syndicating a large corporate loan.
Loan Agency Administration Fee Income
Earning ongoing agency fee for administering a syndicated loan facility as the agent bank.
Collective ECL Provision — Statistical Model (Portfolio Level)
Running the month-end ECL model on the total performing loan portfolio to update the collective provision.
ECL Macro-Economic Overlay — Management Adjustment
Applying a management overlay to the model-based ECL to reflect emerging macro-economic risks not captured in historical data.
NPL Portfolio Sold to Debt Collection Agency
Selling a portfolio of fully provisioned NPLs to a specialist debt collection company at a discount.
Collateral Revaluation — Property Value Decline
Updating the ECL provision when independent collateral revaluation shows a significant decline in property value.
Government-Guaranteed Loan — Zero ECL (Sovereign Risk)
Applying zero ECL provision to a loan fully guaranteed by the Jordanian government.
Branch Staff Payroll — Monthly Expense
Recording monthly gross salaries for tellers, customer service officers, and branch managers.
EOSB Monthly Provision — Bank Staff (Jordan)
Accruing end-of-service benefits for all bank employees under Jordanian Labour Law.
SSC Employer Contribution — Bank (Jordan)
Recording the bank's 14.25% employer Social Security Corporation contribution for all Jordanian staff.
Corporate Income Tax Provision — Bank (Jordan)
Accruing the estimated quarterly income tax liability for the bank.
Deferred Tax Asset — ECL Provisions (Timing Difference)
Recognizing a deferred tax asset on ECL provisions that are not yet tax-deductible under ISTD rules.
WHT on Customer Deposit Interest (Jordan 5%)
Withholding 5% income tax from individual depositors' interest at payment and remitting to ISTD.
CBJ Annual Supervision Fee
Recording the annual supervisory fee charged by the Central Bank of Jordan.
Core Banking System Annual Maintenance Fee
Paying the annual software maintenance and support fee for the core banking system.
Branch Fitout / Leasehold Improvements Capitalized
Capitalizing the cost of fitting out a new branch premises.
ATM Machine Purchase and Depreciation
Capitalizing an ATM machine and recording monthly depreciation.
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