Regulatory Alerts2015-01-01
Instructions No. 58 of 2015 Regarding the Amendment of Instructions on Determinants and Controls for Granting Credit
The Palestine Monetary Authority issued Instructions No. 58 of 2015 to amend the credit granting controls under its 2015/02 framework. The directive specifically revises Article 5 to mandate that vehicle financing must align with each bank's internal credit policy, requiring the establishment of approved financing mechanisms, risk-inclusive loan-to-value ratios, and product-specific risk assessments. All other consumer credit provisions remain unchanged and become effective immediately upon issuance.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (58) of 2015
Regarding the Amendment of Instructions on Determinants and Controls for Granting Credit
Pursuant to the provisions of Decision-Law No. (9) of 2010 concerning Banks, and subsequently to Instructions No. (2015/02) regarding Determinants and Controls for Granting Credit,
and in accordance with the powers delegated to us,
and in the public interest,
we have issued the following Instructions:
Article (1)
Controls for Granting Credit
Amendment of Paragraph (t) of Clause One of Article (5) regarding the financing of car purchases, to read as follows:
(The purchase of cars shall be financed in accordance with the bank's credit policy, subject to the preparation and approval of specific mechanisms and controls for financing and the financing percentage that may be granted to the client, including the client's and product's risks).
Article (2)
Controls and Determinants of Consumer Credit
All other controls specified in Article (5) of Instructions No. (2015/02) shall remain unchanged.
Article (3)
Implementation and Enforcement
All competent authorities shall implement the provisions of these Instructions according to their respective jurisdictions, and they shall apply from the date of their issuance.
Issued in Ramallah on: 22/12/2015 CE,
Corresponding to: 11 Rabi' al-Awwal 1437 AH
Deputy Governor
for Financial Stability Affairs
Supervision and Inspection Department
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | Switchboard: +970 2 2409922
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Switchboard: +970 8 2844487
Email: info@pma.ps | Email: info@pma.ps