Regulatory Alerts2021-01-01
Instructions No. 2021/02: Regarding the Classification of Loan Portfolios
The Palestine Monetary Authority issued Instructions No. 2021/02 to regulate the classification of loan portfolios and the formation of provisions for specialized lending institutions. The document mandates specific risk provisioning percentages for performing and non-performing loans, establishes strict criteria for loan rescheduling, restructuring, and write-offs, and requires detailed quarterly reporting of restructured facilities. It supersedes previous regulations and imposes penalties for non-compliance, with a three-month grace period for institutions to align their operations with the new standards.
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