| Abstrakt: |
The study addressed the issue of the maximum variable interest rate in the loan granted by the commercial bank to the customer in Jordanian legislation, with the aim of demonstrating the extent to which this legislation sets a maximum interest rate. The study used a descriptive analytical legal approach in order to address the problem represented by the multiplicity and conflicting Jordanian legislation concerned. The study was divided into two sections: the first dealt with the general rules of the interest rate in Jordanian law, and the second dealt with the position of the Central Bank of Jordan on the variable interest rate cap. The results showed that in its latest instructions, the Central Bank clarified that the interest rate in a variable interest rate loan contract consists of two parts: a fixed part throughout the term of the contract, and another variable part linked to a reference interest rate. It is not permissible for the bank to unilaterally adjust the interest rate if the variable part is not linked to a reference interest rate specified in the loan contract. Finally, the study formulated a number of recommendations, including that the Central Bank should set a maximum limit for the fixed part of the variable interest rate. [ABSTRACT FROM AUTHOR] |
