Regulatory Alerts2015-01-01
Instructions No. 6 of 2015 Concerning Capital, Reserves, and Ownership Shares
The Palestine Monetary Authority issued Instructions No. 6 of 2015 to establish mandatory capital, reserve, and ownership thresholds for all licensed banks in Palestine. The regulations mandate a minimum paid-in capital of USD 75 million, a 12% capital adequacy ratio with at least 8% core capital, and strict limits on shareholdings capped at 10% for approval and 25% maximum. Furthermore, banks are required to allocate 10% of post-tax profits to a legal reserve, 15% to a countercyclical reserve, and maintain risk reserves calculated on direct and indirect credit facilities, all subject to prior written regulatory approval for any disposal.
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