Regulatory Alerts2019-01-01
Instructions No. 9 of 2019 Concerning Investment in Targeted Economic Projects
The Palestine Monetary Authority issued Instructions No. 9 of 2019 to regulate and encourage commercial banks' investments in emerging Palestinian companies focused on agriculture, industry, alternative energy, IT, and environmental conservation. The directive mandates prior written approval for such equity participations, caps individual bank ownership at 80%, and requires a defined exit strategy within ten years unless extended by the regulator. Additionally, it establishes a 50% risk weight for capital adequacy calculations, permits deductions from mandatory reserve requirements, and outlines specific documentation and governance standards for participating banks.
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