Overnight Interbank Lending (Money Market)
Lending excess liquidity overnight to another Jordanian bank at the JOIBOR rate.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Overnight Loans to Banks (Asset) | Asset (+) | 20,000,000.00 | - |
| CBJ Current Account / Nostro | Asset (−) | - | 20,000,000.00 |
💡 Accountant's Note
Overnight lending is a key liquidity management tool. The bank earns JOIBOR minus a credit margin for overnight risk. The transaction matures the following business day. Despite the short tenor, IFRS 9 ECL (12-month, Stage 1) technically applies.
Practitioner & Systems Framework
💻 ERP Architecture
In SAP TRM or Oracle FLEXCUBE MM, overnight interbank deals are entered as O/N (overnight) money market placements. SWIFT MT320 confirms the deal. Settlement is via CBJ's RTGS (Jordan Automated Clearing System - JACS). CBJ publishes the daily JOIBOR fixings that serve as the benchmark.
⚠️ Audit Flags
Auditors check that counterparty limits are not breached by overnight placements. CBJ large exposure limits apply even for overnight exposure. Related-party overnight placements must be at market rates and disclosed separately.
📄 Required Documentation
Treasury dealing ticket, SWIFT MT320, CBJ JACS settlement confirmation, JOIBOR rate fixing confirmation, and counterparty limit utilization report.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.