Regulatory Alerts2015-01-01
Circular No. 100 on Increasing Paid Capital
The Palestine Monetary Authority issued Circular No. 100 mandating all Palestinian banks to increase their minimum paid or allocated capital to $75 million or its equivalent. Banks must submit a capital increase plan within three months, detailing implementation steps to reach the $75 million threshold by July 15, 2018, while ensuring no single entity or related group holds more than 25% of shares or voting rights. Institutions failing to comply must deposit a non-withdrawable capital reserve equal to 20% of the minimum allocated capital, payable in installments on July 18 of each year from 2016 to 2018 based on $58, $66, and $75 million milestones.
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