... Islamic Bank's (JIB) Issuer Default Ratings (IDRs) are driven by its intrinsic strength as indicated by its Viability Rating (VR). The bank's VR is constrained by the Jordanian operating environment and sovereign-related risks. Strong Domestic Franchise: JIB is the largest and oldest Islamic bank in Jordan with an 11% share of total banking sector deposits at end-2017. JIB represented 56% and 55% of total Islamic banking sector assets and financing at end-2017, respectively. Adequate Asset Quality Metrics: JIB's asset quality metrics are adequate, supported by the bank's conservative risk appetite and longstanding relationships with customers. The impaired financing ratio was 4.4% at end-1H18 and reserve coverage was 83%. However, this excludes the bank's surplus investment risk fund reserves for its financing book. Reserve coverage would have been 108% at end-1H18 if added to loan loss reserves. High Exposure to Sovereign Risk: The bank's...
