Regulatory Alerts2010-01-01
Circular No. 70/2010: Development of the Credit Information System
The Palestine Monetary Authority issued Circular No. 70/2010 to mandate the implementation of a new borrower classification system within the credit information framework, introducing mandatory inquiry fields and standardized risk evaluation metrics. The circular outlines specific modifications to inquiry and response screens, defines evaluation parameters including customer risk scores (100-380), delinquency probability, and risk ratings (A1-E3), and establishes exemption codes for guarantors, inactive accounts, and official entities. A standardized $1.90 inquiry fee will be imposed on lending institutions, which must absorb the cost without passing it to customers, with exemptions for repeated inquiries within seven days and specific watchlisted or non-accommodation clients.