CBJ Plans to Adopt Microfinance Social Performance Indicators

Governor of the Central Bank of Jordan (CBJ), Adel Sharkas, unveiled plans for the adoption of social performance indicators within the sector, positioning the CBJ as a pioneering authority in integrating such metrics into its regulatory framework. Sharkas made these remarks at the inaugural session of the 16th annual Sanabel conference, themed "Global Trends and Their Impact on the Regional Microfinance Sector." Highlighting the conference's significance as a pivotal platform for stakeholders in the microfinance arena, Sharkas emphasized its role in facilitating dialogue among financial experts, policymakers, and microfinance practitioners from both local and international spheres. Regarding Jordan's regulatory approach to microfinance, Sharkas outlined its inception in 2015 with the establishment of regulations for microfinance companies. These regulations, built upon international best practices, aimed to ensure sectoral sustainability and client protection. He noted the expansion of the supervisory fr amework in 2021 to encompass all financing entities. Sharkas underscored the microfinance sector's capacity to adapt to rapid transformations, stressing its pivotal role in fostering financial inclusion and sustainable regional development. Additionally, he emphasized the collective responsibility of policymakers, public and private sectors, and regional and international institutions in supporting the sector's growth. In addressing the sector's resilience amidst economic and technological shifts, Sharkas lauded Jordan's microfinance sector for maintaining financial robustness despite challenges, including those posed by the COVID-19 pandemic. He highlighted the sector's stable profitability, asset integrity, and expansion efforts to cater to a broader customer base. Sharkas also emphasized the potential of artificial intelligence, technological innovation, and digital transformation to revolutionize microfinance operations. Furthermore, he urged companies to leverage these advancements to streamline pr ocesses, enhance customer accessibility, and mitigate risks, while prioritizing data privacy, cybersecurity, and customer-centricity. Source: Jordan News Agency