AMMAN, July 19 ( Reuters) - Jordan's stock market on Sunday resumed trading in Capital Bank shares a week after its suspension following the takeover of the banks' management by the central bank of Jordan after board governance violations.
The central bank governor, Umayya Toukan, last week dissolved the bank's board headed by Iraqi investor Hassan Kubah, citing board disputes and breaches in board governance that threatened its solid financial position.
Toukan said a new temporary management under his supervision would run the bank's operations for six months.
Kubah, a scion of an old merchant family which owns Basra International Bank for Investment, along with a group of Arab investors last January took 49 percent of the bank after buying out leading Jordanian investors.
Banking sources said the authorities were concerned with Kubah's moves to expand loans to his Iraq business affiliates, including the National Bank of Iraq, in which Capital Bank indirectly acquired a 59 percent stake after the buyout.
A banking source also said the central bank has asked Kubah, the largest shareholder who became the chairman of the board after the ownership changes, to reduce his majority holding, which has now risen to 51 percent.
Capital Bank, with 132 million dinars ($186 million) of capital, and with a focus on trade and corporate finance, has assets of 984 million dinars.
The bank's shares slipped 0.58 percent to close at 1.70 dinars at end of trading on Sunday in minimal trade.
($1 = 0.709 dinar)
The central bank governor, Umayya Toukan, last week dissolved the bank's board headed by Iraqi investor Hassan Kubah, citing board disputes and breaches in board governance that threatened its solid financial position.
Toukan said a new temporary management under his supervision would run the bank's operations for six months.
Kubah, a scion of an old merchant family which owns Basra International Bank for Investment, along with a group of Arab investors last January took 49 percent of the bank after buying out leading Jordanian investors.
Banking sources said the authorities were concerned with Kubah's moves to expand loans to his Iraq business affiliates, including the National Bank of Iraq, in which Capital Bank indirectly acquired a 59 percent stake after the buyout.
A banking source also said the central bank has asked Kubah, the largest shareholder who became the chairman of the board after the ownership changes, to reduce his majority holding, which has now risen to 51 percent.
Capital Bank, with 132 million dinars ($186 million) of capital, and with a focus on trade and corporate finance, has assets of 984 million dinars.
The bank's shares slipped 0.58 percent to close at 1.70 dinars at end of trading on Sunday in minimal trade.
($1 = 0.709 dinar)