Regulatory Alerts2010-01-01
Circular No. 68: Development of the Credit Information System
The Palestine Monetary Authority issued Circular No. 68 to mandate the implementation of a new borrower classification system within the Credit Information System, introducing mandatory inquiry fields and updated response report disclosures. The circular establishes a risk grading framework ranging from A1 to E3 based on client evaluation scores and 12-month default probabilities, while defining specific exemption codes for guarantors, inactive accounts, and official entities. Additionally, it imposes a $1.90 fee per evaluated inquiry to be borne by banks, outlines fee exemptions, and provides detailed operational guidelines and risk interpretation tables for compliance.
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