Amman: Banks in Jordan will not apply the Central Bank of Jordan (CBJ's) 25-basis-point rate increase to existing personal loans, leaving monthly payments unchanged.
According to Jordan News Agency, the Association of Banks in Jordan (ABJ) stated that lenders are absorbing the increase despite higher funding costs, including rising interest rates on deposits, particularly foreign currencies, following the Federal Reserve's recent 25-basis-point rate hike.
The ABJ mentioned that the decision aims to support borrowers during economic hardship while ensuring the stability of the banking sector. By not passing the rate increase to personal loan holders, banks are providing relief to consumers amidst challenging financial conditions.