Introduction about the bank and its activities

• In 1951, a specialized financial institution was established to finance municipal projects under the name of the Economic Development Fund with a modest capital of 68 thousand dinars

• In 1955 this fund was transferred to the reconstruction Council under the name of the municipal loan fund with a capital of (1.7) million dinars and merged with the rural reform department.

• In 1966, the fund became an independent institution under the name of the municipal loan fund with a capital of (2.1) million dinars.

• On 16/9/1979, the cities and villages Development Bank was established with a capital of (5.8) million dinars.

• In 1982, the bank's capital was raised to 12 million dinars.

• In 1996, the bank's capital was raised to 25 million dinars.

• In 2002, the bank's capital was raised to 50 million dinars.

• In 2016, the bank's capital was raised to 100 million dinars.

• In 2017, the bank's capital was raised to (110) million dinars.

Cities and villages Development Bank is an official public institution with a legal personality that is administratively and financially independent. Founded in 1979, the share capital of the bank authorized (110) million dinars, while the paid-up capital and reserves ( 108 ) million dinars for the financial year ending 31/12/2022 according to the following table:

The bank provides the necessary long-term financing for the establishment of Service and production projects implemented by local authorities in the kingdom, where the bank provided the necessary financing for development and service projects in all cities and villages of the kingdom. The bank also manages and guarantees loans held by these bodies with any other entity aimed at providing basic services to local communities, assists local bodies in prioritizing their productive projects in the light of their economic feasibility, provides expertise and technical and training services to raise the level of their employees, and manages the funds of local bodies collected by the government.

Bank Board of directors:

The bank is managed by a nine-member board of directors as follows:

• Minister of municipal affairs as chairman.
• The general manager of the bank as vice-president.
• A representative of the Ministry of Finance is a member.
• A representative of the Ministry of Public Works members.
• A representative from the Ministry of municipal affairs is a member of.
• A representative of the Ministry of planning is a member.
• A representative of the central bank is a member.
• Two representatives of local bodies are members.

The executive branch of the bank is headed by the general manager, who is appointed by a decision of the Council of ministers on the basis of the placement of the board of directors and who implements the decisions of the board, applies the general policy of the bank, supervises the administrative body and exercises the powers conferred upon it by the regulations issued by

Objectives and duties of the bank:

• Support the projects of local bodies to secure services aimed at the creation of basic public services and contribute to their development by mobilizing domestic and external financial resources and providing the necessary credit facilities for the implementation of these projects.
• Manage and guarantee loans made by local authorities and perform any banking function, transaction or work required by the execution of its duties under this law or any other legislation or under any international agreement to which the government of the kingdom is a party and whose implementation requires the participation of the bank.
• Assist local authorities in prioritizing productive projects in light of their economic feasibility and contributing to the capital of these projects.
• Assist in providing expertise and technical services including training of technicians needed by local bodies.
• Provide facilities to any local authority or institution whose objectives include the provision of basic services within the boundaries of local bodies.
• Financing projects for local entities that are not based on interest on the grounds and conditions established by a system issued to that end.

Banking activity:

1. The bank collects government revenues from taxes and fees (revenues from government subsidies, vehicle licenses, fines and infractions ) and distributes them to municipalities according to the established foundations of the Cabinet of ministers.
    
2. Open commercial bank accounts to receive municipal collections from their own revenues or other accounts with the bank and direct exchange of municipal customers from contractors and suppliers from this account.
    
3. Opening accounts for trusts through which social security, health insurance, employee trusts and other trusts are disbursed.
    
4. Since 2017, the bank has started electronic payments through the system of e-bills (Social Security - roofs-vocational licenses-electricity-water-tickets-university fees).
    
5. Opening accounts for municipal trainee engineers and disbursing their monthly salaries.
    
6. Receipt and delivery of guarantees (entry for tender - good execution –maintenance).
    
7. Follow-up and unlock special accounts in international projects and foreign exchange them.

Lending activity:

The bank provided long-term loans to local authorities for the purpose of financing services and production projects at affordable interest rates .the amount of loans during 2017 amounted to (9,550. 0) million dinars. the following table shows the distribution of loans. One of the most important projects financed by the bank :

1. Service projects include infrastructure projects.
2. Production projects are financially beneficial to the municipality.

3. As of the beginning of 2010, the bank began to finance income-generating investment projects in partnership with municipalities and the private sector in the implementation of the strategic plan to diversify the sources of income for municipalities and the bank, where the number of projects studied and approved and implemented (4) projects in the municipalities of Ruseifa, Shawna and Ma'an with a total value of (1.9) million dinars. The bank also actively participates in the development of municipal work and control of spending by granting certain municipalities facilities in debit current accounts to cover financing needs.