Since 2004, the Government of the Hashemite Kingdom of Jordan, represented by the Central Bank of Jordan, has been closely following the developments in the case filed in New York against the Arab Bank (Linde, et al.v.Arab BankPlc), offering its support and assistance throughout the process. This support and assistance stems from the Government’s confidence in the Arab Bank’s banking operations and compliance procedures.
The jury’s recent liability verdict is subject both to further proceedings in the district court and, subsequently, to appeal. The Arab Bank’s ability to defend itself before the jury was prejudiced by a sanctions order imposed by the court as a result of the Arab Bank’s compliance with laws in the jurisdictions in which it operates, including Jordan. Under the U.S. procedural rules, the Arab
Bank was not able to appeal that order before trial, but it will now have the opportunity to show that the sanctions were incorrectly imposed and that they significantly prejudiced the Arab Bank’s ability to defend itself, resulting in an unjust and legally unsound verdict.
Notwithstanding the jury’s verdict, and given that the Arab Bank will continue to defend these claims through further litigation in the trial and appellate courts, the Central Bank of Jordan has not determined any risks to the Arab Bank’s financial health during this period.
The Arab Bank has solid year-on-year earnings, has a strong level of capitalization with a capital adequacy ratio of (15%), and enjoys very strong liquidity position. The Central Bank of Jordan remains confident about the strength of Arab Bank’s banking operations and compliance procedures, and about the Arab Bank’s financial position and ability to withstand the likely repercussions of this litigation.
To read the press release on the Central Bank of Jordan website, click here.