CBJ Mandatory Reserve Requirement Maintained
Maintaining the mandatory reserve deposit at the Central Bank of Jordan.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Mandatory Reserve at CBJ | Asset (+) | 10,000,000.00 | - |
| Current Account / Nostro at CBJ | Asset (−) | - | 10,000,000.00 |
💡 Accountant's Note
CBJ requires banks to maintain a minimum reserve balance (a percentage of eligible deposits). This reserve is restricted — it cannot be used for daily operations. It is classified as a restricted cash asset, separate from the operational balance at CBJ.
Practitioner & Systems Framework
💻 ERP Architecture
The mandatory reserve calculation is performed by the Finance department based on the CBJ's reserve requirement ratio applied to eligible deposits. In SAP/Oracle FLEXCUBE, the CBJ reserve account is a separate GL code from the operational CBJ nostro account, ensuring it is not included in the available liquidity calculation.
⚠️ Audit Flags
CBJ inspectors test reserve compliance on a daily basis. Breaches of the minimum reserve requirement trigger significant fines. Auditors verify that the mandatory reserve is correctly excluded from the LCR (Liquidity Coverage Ratio) calculation — restricted cash cannot count as HQLA.
📄 Required Documentation
CBJ reserve requirement calculation worksheet, daily reserve balance confirmation to CBJ, monthly reconciliation of reserve balance to CBJ statement, and compliance certificate from the Finance Controller.
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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.