Regulatory Alerts2026-01-01
High Authority - 2020 - Instructions No. 36 Regarding Early Repayment of Financing
The Palestine Monetary Authority issued Instructions No. 36 of 2020 to amend Article (7) of its Responsible Lending framework, mandating that licensed Islamic banks reinstate profits credited to repaid balances and permitting early repayment fees for full or partial financing settlements. The revised paragraph (3/5) explicitly requires banks to credit back all profits associated with the repaid principal while allowing them to deduct early settlement fees according to specified ratios. These Instructions apply to all licensed Islamic banks in Palestine, repeal conflicting provisions, and take effect immediately upon issuance.
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