Regulatory Alerts2023-01-01
Instructions No. (5) of 2023 Regarding Market Discipline and Protection of Customer Rights
The Palestine Monetary Authority issued Instructions No. 5 of 2023 to enforce strict market discipline and comprehensively protect customer rights across all licensed Palestinian banks. The regulations mandate transparent credit pricing, cap installment deductions at 35-50% of documented income, prohibit unfair collateral practices, and require free financial literacy resources and fraud prevention systems. Banks must also ensure data confidentiality, standardize contract disclosures, restrict guarantor liabilities, and obtain prior regulatory approval for new financial products to mitigate over-indebtedness and systemic risks.
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