Regulatory Alerts2016-01-01
Circular No. 92: Updated Version of the Borrowers' Credit Scoring System
The Palestine Monetary Authority issued Circular No. 92 to implement Version IV of the updated Borrowers' Credit Scoring System, effective June 5, 2016. The revision separates individual and corporate scoring cards, recalibrates risk weights for variables such as payment compliance, delinquency aging, guarantor liability, and credit card utilization, and adjusts probability thresholds for risk grades A through E. Banks are mandated to disseminate these changes to credit information system users and apply the new scoring parameters to reflect historical credit behavior and mitigate over-indebtedness risks.
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