Regulatory Alerts2018-01-01
Circular No. 133: Credit Granted to Related Parties
The Palestine Monetary Authority requires all banks operating in Palestine to establish and obtain regulatory approval for dedicated employee lending systems or programs by September 30, 2018. After this deadline, the regulator will reject all applications for granting or renewing employee credit facilities classified as related-party transactions. The directive explicitly exempts senior leadership, including the General or Regional Manager, their deputies and assistants, and the Head of the Facilities Department, from these new approval restrictions.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (133/2018) To all banks operating in Palestine Date: Tuesday, June 26, 2018
Subject: Credit Granted to Related Parties
With reference to Instructions No. (2014/06) dated 14/05/2014 regarding Credit Granted to Related Parties, all banks are required to prepare dedicated loan systems or programs for employees and obtain the Palestine Monetary Authority's approval for such systems and programs by no later than 30/09/2018. Please note that after this date, no requests submitted by banks for granting or renewing facilities for employees (classified as related parties in accordance with the aforementioned instructions) will be considered, except for the General Manager or Regional Manager, their deputies and assistants, and the Head of the Facilities Department.
Supervision and Inspection Department Palestine Monetary Authority
Ramallah - Palestine PO. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2415310 Gaza - Palestine PO Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 Email: info@pma.ps www.pma.ps