Regulatory Alerts2015-01-01
Circular No. 132: Requirement to Modify Customer Classification on the Bounced Cheques System for Granting Facilities
The Palestine Monetary Authority issued Circular No. 132/2015 to clarify that its regulations do not prohibit banks from granting credit facilities to customers classified on the Bounced Cheques System. The Authority explicitly states that credit approval remains solely at the discretion of each bank according to its board-approved credit policy, without regulatory interference. Effective November 2015, the Authority will cease processing any customer requests to modify their classification on the system for facility purposes, directing all such decisions to the respective banks.
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