Regulatory Alerts2023-01-01
Instructions No. 12 on the Continuity of the National Economy's Financial Cycle (2)
The Palestine Monetary Authority issued Instructions No. 12 of 2023 to safeguard the national economy's financial cycle by mandating licensed banks to implement targeted credit restructuring, liquidity support, and digital banking facilitation measures. The directives require financial institutions to postpone loan installments, restructure facilities without increasing interest rates, waive restructuring fees, extend temporary overdraft limits, and prioritize financing for vital productive sectors while restricting consumer and offshore credit. Furthermore, banks must conduct continuous asset quality monitoring, stress testing, and timely risk reporting to the Authority, with specific provisions for Gaza Strip borrowers and the suspension of returned cheque commissions.