Regulatory Alerts2010-01-01
Circular No. 66: Unupdated Facility Data
The Palestine Monetary Authority issued Circular No. 66 to mandate strict compliance with credit reporting standards following widespread inaccuracies in how banks report settled facilities, file numbers, identification codes, and classifications. The circular requires banks to exercise precision when opening credit records, submit monthly settlement files only once by adjusting limits and balances while preserving other data, and maintain consistent facility file numbers throughout the disclosure period. Failure to adhere to these directives will directly distort borrower classification systems, prompting the regulator to enforce rigorous verification protocols across all banking users of the credit information system.
Palestine Monetary Authority
Palestine Monetary Authority
Circular No. (2010/66) To all banks operating in Palestine Date: Wednesday, June 30, 2010
Subject: Unupdated Facility Data
Based on Credit Information Bureau Instruction No. (2007/160) dated 28/10/2007 regarding the regulation of the credit information system's operations, and given that some banks have not fully complied with correctly reporting terminated/settled facilities, continuing to report the facility file number as originally created, incorrectly reporting the identification number, or changing the facility classification, which results in these files being excluded from the system's active database and transferred to the unupdated facilities database.
In light of the above and to resolve these observations in accordance with instructions and procedures, we emphasize the necessity of following the following measures to address such errors:
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Exercise precision and caution when filling out data and verify the accuracy of all information before executing the credit record opening process.
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Adhere to the facility settlement mechanism as per instructions by submitting it in the monthly file only once, by reducing the approved limit and utilized balance while keeping all other data as reported in the last submission.
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Ensure that the facility file number is not changed throughout the disclosure period of the facility.
Accordingly, all banks are requested to disseminate this circular to users of the credit information system and emphasize to them the need for precision and caution when reporting borrowers' facilities and their guarantors, as this has a direct impact on the borrower classification system.
Dr. Fouad Baroud Minister of Finance and Economy Palestine Monetary Authority
Ramallah - Al Bireh P.O. Box 452 - Tel: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel: 08-2826713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps Ramallah - Al Bireh - P.O. Box: 452 - Tel: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box: 4026 - Tel: 08-2826713 - Fax: 08-2844487