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AMMAN — Licensing, monitoring and supervising micro-finance companies have become the task of the Central Bank of Jordan (CBJ), as the 2015 Micro-Finance Companies By-law will go into effect as of June 1, a CBJ statement announced on Saturday.
The bank's decision to include these companies under its umbrella is in light of the sector's role in providing finances to low-income people or to those who cannot receive financial services from the banking sector. The decision will also help these categories of people achieve economic security through changing them from aid-receiving parties to productive ones.
The by-law defined micro-finance as: presenting finances and financial activities to low-income people or to those who cannot receive financial services, either in full or partially, from the banking sector, whether they are individuals, micro- or small-enterprises according to CBJ standards. CBJ added that it will work on developing the role of micro-finance sector and achieving its sustainability.
In the same regard, the by-law also banned any person from practicing any micro-finance activity without obtaining a licence from the CBJ unless he meets the requirements and conditions necessary for this purpose. As for current companies, the by-law granted them time to rectify their statuses.