Jordan's Central Bank Regulates the Use of Artificial Intelligence in the Banking Sector

SadaNews - The Central Bank of Jordan announced the release of a regulatory framework for the use of artificial intelligence in the Jordanian banking sector, in a strategic move aimed at supporting innovation and ensuring the safe and responsible use of modern technologies, thereby enhancing the country's position as a regional hub for financial technology and aligning with national trends in digital transformation and economic modernization.

This regulatory framework comes as part of the Central Bank of Jordan's efforts to enable digital transformation in the financial and banking sector, providing a flexible and secure regulatory environment that facilitates the adoption and use of innovative financial technologies. The framework also contributes to establishing clear regulatory foundations that assist banking institutions in effectively adopting artificial intelligence solutions, taking into account principles of good governance, risk management, data protection and privacy, and the employment of modern technologies.

In this context, the Governor of the Central Bank of Jordan, Dr. Adel Sharkas, affirmed: "The issuance of the framework is an important step in the development of the banking sector and embodies the Central Bank's commitment to enhancing the digital infrastructure of the financial sector by enabling the secure, responsible, and thoughtful use of artificial intelligence technologies, which are among the most important enablers of digital transformation and a driving force for economic development."

The governor also praised the efforts of the steering committee for artificial intelligence and emerging and future technologies in the financial and banking sector, which contributed to formulating an integrated strategic vision that views artificial intelligence as a cornerstone for enhancing economic development and developing financial services. This initiative was established by the Central Bank as an institutional effort to support the safe and effective adoption of emerging technologies. The committee included a selection of experts from the Central Bank of Jordan, the sector, and academics specialized in artificial intelligence fields.

This achievement reflects the Central Bank's commitment to providing an encouraging environment for the growth of the fintech sector by supporting innovation and enhancing the efficiency and competitiveness of banking services, in line with the Kingdom's vision of building a secure and sustainable financial sector.