Governance Framework of Financial Inclusion in Jordan

The National Financial Inclusion Strategies in Jordan are developed and executed in a participatory, consultative multi-stakeholder policy process, engaging all relevant stakeholders who act within a clear strategy framework, and under an effective governance structure with the leadership and oversight by the CBJ. The CBJ guides stakeholders through the FISC, coordinates with them through the FITC, consults with them in Working Groups, and provides needed supports through the Financial Inclusion Secretariat.

The governance framework for the financial inclusion policy process depicted above follows a three-layered approach that is supported by the cross-functional Financial Inclusion Unit within the CBJ. It covers the following committees and bodies listed in order of descending hierarchy:

  1. Financial Inclusion Steering Committee (FISC):
    The FISC is chaired by the CBJ Governor, deputized by the CBJ Deputy Governor, and comprises of the Secretary Generals of the Ministries of Planning and International Cooperation, Finance, Education, and Labor; the General Managers of the Development and Employment Fund (DEF) and the Jordan Loan Guarantee Corporation (JLGC); and the Chairmen of the Association of Banks (ABJ) and Tanmeyah. The FISC steers and oversees the national multi-stakeholder policy process. The FISC members meet on a semi-annual basis.
  2. Financial Inclusion Technical Committee (FITC):
    The heads of the Working Groups form the FITC, which is led by the CBJ Deputy Governor. The FITC comprises Central Bank executive management. It is responsible for regular consultations with WGs and coordination of outputs across the priority policy areas; for regular follow up and monitoring of progress in the strategy implementation; for reporting towards the FISC. The FITC members meet four times a year.
  3. Working Groups (WGs):
    Led mainly by CBJ executive management and composed of private, public and civil society stakeholders, a total of six working groups has been established for the core set of priority policy areas of Jordan’s financial inclusion strategy, namely: DFS; Microfinance; SME Finance; Financial Capabilities; Financial Consumer Protection; and Data and Research. The main tasks of the WGs in the strategy process are to provide inputs for the NFIS as well as to move forward the strategy implementation. The WGs meet monthly.
  4. Financial Inclusion Unit (FIU):
    A cross-cutting function across the high-level FISC, senior-level FITC and technical level WGs is fulfilled by the FIU within the CBJ that serves as the financial inclusion secretariat. The secretariat is responsible for enabling effective and efficient governance of the policy process, collecting and disseminating information, facilitating communication across all levels, and expediting the monitoring and evaluation of the strategy implementation.