Circular No. 110 Amendments to Credit Information Systems Regulations

Palestine Monetary Authority

Circular No. (115/2022) To all banks operating in Palestine Date: Tuesday, May 10, 2022

Subject: Amendments to Credit Information Systems Regulations

Continuing the Authority's approach to developing its automated systems and work procedures to contribute to enhancing the risk management environment for banks and aiming to reduce credit risks by providing accurate, comprehensive, and updated information for system users, and based on previous user feedback which has been taken into account to achieve a high level of data accuracy, please find attached the key amendments made to the Credit Information Systems:

• Amendments to the Credit Report.
• Amendments to the Record Opening Screen.
• Amendments to the Financial Data Modification Screen.
• Amendments to the Monthly Facilities File Structure.
• Amendments to Personal Data Files.

First: Amendments to the Credit Report:

1. A note has been added to the credit report for customers indicating the existence of another file for the customer based on the document type.
2. The name and ID number of the partner have been displayed for joint accounts.
3. The number and value of bounced checks on the customer's account are now displayed on the credit report.
4. Increase in the number of guarantees provided by guarantors.
5. Display of the enterprise classification for facilities granted to micro, small, and medium enterprises (MSMEs).

Second: Amendments to the Credit Record Opening Screen:

1. Addition of the number of guarantees provided by guarantors.
2. Addition of the fields for number of employees and annual sales volume to the demographic data for companies.
3. Based on Circular No. (168/2021) regarding the definition of enterprises, the classification equation based on the number of employees and annual sales volume has been applied to the credit record opening screen, including the enterprise owner working in the enterprise.
4. The user will be directed to correctly open the credit record as a company or (SMEs) based on data regarding the number of employees and annual sales volume.
5. The enterprise classification will be automatically displayed during the record opening process after completing the required data.

Third: Amendments to the Financial Data Modification Screen:

1. Settlement of guaranteed facilities by searching for the guarantor's ID number.
2. Settlement of more than one facility at once.
3. Modification of the facility category.

Fourth: Amendments to the Monthly Facilities File:

• Amendments to the Monthly Facilities File Structure: The financial file structure has been modified by increasing the number of guarantor data fields, adding three additional guarantees to the number of guarantees provided by guarantors, making it four fields for guarantees provided by guarantors. According to Annex No. (1).

• Amendments Regarding Data Audit Processes: To maintain data accuracy, comprehensiveness, and timeliness, and to achieve a high level of accuracy for reported data in the Credit Information System database, a set of constraints governing disclosure mechanisms according to the most accurate standards has been added and applied in two phases.

• Phase One: Data Accuracy Conditions: This phase is mandatory, and the file cannot be uploaded to the system unless the following conditions are met:

1. Banks must declare customers holding document type (C, S) with the nationality code (PS), including foreign companies registered with the Palestinian Companies Registrar.
2. Do not declare facilities carrying the facility category (SM) for micro, small, and medium enterprises in economic sectors (S6, S8).
3. Declare all housing and mortgage facilities (MO) in economic sector (S1).
4. Banks must commit to not reusing the facility file number.
5. Declare the value of unpaid due installments as (zero) when declaring the customer status evaluation as (0, 1).
6. Declare the value of unpaid due installments greater than (zero) when declaring the customer status evaluation as (2, 3, 4, 5).
7. Banks must declare the legal procedure (A) if transferred to legal action, and when declaring the customer status evaluation as (9), the debt has been written off.
8. Banks must declare the customer status evaluation according to Annex No. (9).
9. Banks must declare the facility category (CO) for facilities granted to government sector institutions carrying the government sector status (2000).
10. Banks must declare the facility (F023) Government Payment Authorizations, linked to the sovereign code PM02080125, based on Circular No. (2016/65) regarding the declaration of government payment authorizations on the credit information system.
11. Commit to declaring date fields in the approved format (DD/MM/YYYY) with actual values.
12. Banks must declare the date of the last paid installment for facilities where installment payments were delayed.
13. Commit to declaring the value of the collateral fields (G10, G11) when declaring guarantor data.
14. Commit to declaring personal guarantors when declaring the value of either of the fields (G10, G11).

• Phase Two: Data Audit Follow-up: After completing the processing of the monthly financial file without errors, the bank must review the data accuracy report, which addresses some exception-eligible data accuracy conditions.

1. Facilities where the customer status evaluation is (0, 1) and the legal procedure taken has been transferred to legal action (A).
2. Facilities where the customer status evaluation is (7, 9) and the value of unpaid due installments equals zero.
3. Facilities where the customer status evaluation is (6) and the provision value equals (zero).
4. Loans where the utilized balance for the current month is higher than the utilized balance for the previous month.

Fifth: Audit of Personal Data Files:

1. Banks must declare customers holding document type (C, S) with the nationality code (PS), including foreign companies registered with the Palestinian Companies Registrar.
2. Banks must declare customer attributes for individuals when the document type is (S, F) according to Annex No. (15).
3. Banks must declare customer attributes for companies and entities when the document type is (C) according to Annex No. (15).
4. Banks must declare the capital value for customers classified as companies.
5. To analyze borrower status and determine the volume of credit granted to borrowers according to their legal status, the categories of borrower statuses and individuals affiliated with these companies have been expanded. Therefore, all banks are requested to process the declaration of borrower statuses according to the new amendments introduced in Annex No. (15).

Accordingly, we hope all banks adopt the aforementioned amendments for disclosure purposes on the Credit Information Systems starting from 2022/06/12.

Financial Stability Group Palestine Monetary Authority

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Annex No. (1)

Financial Data File Structure (Monthly Financial Facilities File)

Seq.	Field Name	Field Nature
1.	Number of applications submitted during the period	Mandatory field regardless of loan purpose
2.	Number of applications rejected during the period	Mandatory field regardless of loan purpose

File Structure:

Seq.	Field Name	Field Name
1.	ID/ Passport/ Company/ Entity Registration	Customer ID/ Registration Number
2.	Borrower Document Type	Customer ID Type
3.	Nationality	Nationality
4.	Facility File Number	Facility File Number
5.	Classification (Category) of Facility	Facility Category
6.	Account Classification	Account type
7.	Bank Code	Bank Code
8.	Branch Code	Branch Code
9.	Month	Month
10.	Year	Year
11.	Facility Type	Facility Type
12.	Disbursement Currency	Currency Type
13.	Economic Sector	Economic Sector
14.	Customer Status Evaluation	Manner of Payment (MOP)
15.	Approved Ceiling	Credit Ceiling
16.	Outstanding Balance	Outstanding Balance
17.	Allocated Provision Size	Allocated Provision
18.	Facility Grant Date	Extension Date
19.	Last Installment Due Date	Last Installment Due Date
20.	Value of Unpaid Due Installments	Unpaid installments (Dues)
21.	Periodic Installment Type	Installment Type
22.	Periodic Installment Value	Installment Amount
23.	Legal Procedures	Legal Procedures
24.	Number of Granted Facility Installments	Number of Installments
25.	Last Installment Paid Date	Last Installment Paid Date
26.	Grace Period (in months)	Grace Period
27.	Interest Rate	Interest rate
28.	Interest Type	Interest type
29.	Value of First Collateral	Collaterals
30. - 47.	G1 - G19
48.	First Guarantor ID No.	First Guarantor ID No.
49.	First Guarantor Document Type	Guarantor ID Type
50.	First Guarantor Nationality	Guarantor Nationality
51.	Type of First Collateral Provided by 1st Guarantor	Type of first Collateral Provided by 1st Guarantor
52.	Type of Second Collateral Provided by 1st Guarantor	type of second guarantee provided by 1st Guarantor
53.	Type of Third Collateral Provided by 1st Guarantor	type of third guarantee provided by 1st Guarantor
54.	Type of Fourth Collateral Provided by 1st Guarantor	type of fourth guarantee provided by 1st Guarantor
55.	Second Guarantor ID No.	Second Guarantor ID No.
56.	Second Guarantor Document Type	Second Guarantor ID Type
57.	Second Guarantor Nationality	Second Guarantor Nationality
58.	Type of First Collateral Provided by 2nd Guarantor	Type of first Collateral Provided by 2nd Guarantor
59.	Type of Second Collateral Provided by 2nd Guarantor	type of second guarantee provided by 2nd Guarantor
60.	Type of Third Collateral Provided by 2nd Guarantor	type of third guarantee provided by 2nd Guarantor
61.	Type of Fourth Collateral Provided by 2nd Guarantor	type of fourth guarantee provided by 2nd Guarantor
62.	Third Guarantor ID No.	Third Guarantor ID No.
63.	Third Guarantor Document Type	Third Guarantor ID Type
64.	Third Guarantor Nationality	Third Guarantor Nationality
65.	Type of First Collateral Provided by 3rd Guarantor	Type of first Collateral Provided by 3rd Guarantor
66.	Type of Second Collateral Provided by 3rd Guarantor	type of second guarantee provided by 3rd Guarantor
67.	Type of Third Collateral Provided by 3rd Guarantor	type of third guarantee provided by 3rd Guarantor
68.	Type of Fourth Collateral Provided by 3rd Guarantor	type of fourth guarantee provided by 3rd Guarantor
69.	Fourth Guarantor ID No.	Forth Guarantor ID No.
70.	Fourth Guarantor Document Type	Forth Guarantor ID Type
71.	Fourth Guarantor Nationality	Forth Guarantor Nationality
72.	Type of First Collateral Provided by 4th Guarantor	Type of first Collateral Provided by 4th Guarantor
73.	Type of Second Collateral Provided by 4th Guarantor	type of second guarantee provided by 4th Guarantor
74.	Type of Third Collateral Provided by 4th Guarantor	type of third guarantee provided by 4th Guarantor
75.	Type of Fourth Collateral Provided by 4th Guarantor	type of fourth guarantee provided by 4th Guarantor
76.	Fifth Guarantor ID No.	Fifth Guarantor ID No.
77.	Fifth Guarantor Document Type	Fifth Guarantor ID Type
78.	Fifth Guarantor Nationality	Fifth Guarantor Nationality
79.	Type of First Collateral Provided by 5th Guarantor	Type of first Collateral Provided by 5th Guarantor
80.	Type of Second Collateral Provided by 5th Guarantor	type of second guarantee provided by 5th Guarantor
81.	Type of Third Collateral Provided by 5th Guarantor	type of third guarantee provided by 5th Guarantor
82.	Type of Fourth Collateral Provided by 5th Guarantor	type of fourth guarantee provided by 5th Guarantor

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Annex No. (2)

Borrower/Guarantor Document Type

Code	Type
S	ID Card
F	Passport
C	Registration Certificate

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Annex No. (3)

International Country Codes (for determining Borrower/Guarantor Nationality)

(List of countries and ISO codes)

• United Arab Emirates: AE
• Argentina: AR
• Australia: AU
• Austria: AT
• Belgium: BE
• Bulgaria: BG
• Bahrain: BH
• Bosnia and Herzegovina: BA
• Brazil: BR
• Brunei: BN
• Canada: CA
• Chile: CL
• China: CN
• Cameroon: CM
• Colombia: CO
• Costa Rica: CR
• Cuba: CU
• Cyprus: CY
• Czech Republic: CZ
• Germany: DE
• Djibouti: DJ
• Denmark: DK
• Algeria: DZ
• Ecuador: EC
• Egypt: EG
• Spain: ES
• Finland: FI
• France: FR
• United Kingdom: GB
• Greece: GR
• Guatemala: GT
• Hong Kong: HK
• Hungary: HU
• Indonesia: ID
• India: IN
• Ireland: IE
• Iraq: IQ
• Israel: IL
• Italy: IT
• Jordan: JO
• Japan: JP
• Kenya: KE
• South Korea: KR
• Kuwait: KW
• Lebanon: LB
• Libya: LY
• Sri Lanka: LK
• Luxembourg: LU
• Morocco: MA
• Mexico: MX
• Malta: MT
• Mauritania: MR
• Malaysia: MY
• Nigeria: NG
• Netherlands: NL
• Norway: NO
• New Zealand: NZ
• Sultanate of Oman: OM
• Pakistan: PK
• Peru: PE
• Philippines: PH
• Poland: PL
• Portugal: PT
• Paraguay: PY
• Palestine: PS
• Qatar: QA
• Romania: RO
• Russia: RU
• Saudi Arabia: SA
• Sudan: SD
• Senegal: SN
• Singapore: SG
• Sweden: SE
• Switzerland: SZ
• Syria: SY
• Thailand: TH
• Tunisia: TN
• Turkey: TR
• Taiwan: TW
• Uganda: UG
• Ukraine: UA
• Uruguay: UY
• United States of America: US
• Venezuela: VE
• Yemen: YE
• Zambia: ZM

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Annex No. (4)

Facility Category Classification

Code	Type
SI	Retail Credit (Individual Facilities)
CO	Corporate Credit (Company/Enterprise Facilities)
SM	SME Loan (Small and Medium Enterprise Facilities)
MO	Housing and Mortgage Loan

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Annex No. (5)

Joint Facility Parties

Code	Type
J	Joint Loans
S	Single Loans

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Annex No. (6)

Bank and Branch Codes

(List of banks and branches with serial numbers)

• 0100: Bank of Palestine
• 0101: Main Branch
• 0102: Branch A
• 0103: Branch B
• 0200: Cairo Amman Bank
• 0201: Main Branch
• 0202: Branch A
• 0203: Branch B
• 0400: Arab Bank
• 0401: Main Branch
• 0402: Branch A
• 0403: Branch B
• 0600: The Arab Bank
• 0601: Main Branch
• 0602: Branch A
• 0603: Branch B
• 0700: Arab Bank for Investment
• 0701: Main Branch
• 0702: Branch A
• 0703: Branch B
• 0800: Palestinian Investment Bank
• 0801: Main Branch
• 0802: Branch A
• 0803: Branch B
• 0900: Jordanian Ahli Bank
• 0901: Main Branch
• 0902: Branch A
• 0903: Branch B
• 1200: Housing and Trade Finance Bank
• 1201: Main Branch
• 1202: Branch A
• 1203: Branch B
• 1400: Arab Islamic Bank
• 1401: Main Branch
• 1402: Branch A
• 1403: Branch B
• 1600: Al-Quds Bank
• 1601: Main Branch
• 1602: Branch A
• 1603: Branch B
• 2000: Palestinian Islamic Bank
• 2001: Main Branch
• 2003: Branch A
• 2004: Branch B
• 2700: National Bank
• 2701: Main Branch / Ramallah
• 2800: Safaa Bank
• 2801: Main Branch / Ramallah

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Annex No. (7)

Facility Type (Direct and Indirect Facility Codes)

Code	Type
F001	Discounted bills
F002	Overdraft accounts
F003	Overdrawn current accounts
F004	Loans
F005	Allowances
F006	Guarantees
F007	Acceptable promissory notes
F008	Letters of credit (L/C)
F009	Bills for collection
F010	Lease Financing/ Lease to own
F011	Murabaha (Islamic product)
F012	Estissna'a (Islamic product)
F013	Mudarabah (Islamic product)
F014	Musharakah (Islamic product)
F015	Credit cards
F016	Ejarah (Islamic product)
F017	Tawarok (Islamic product)
F018	ASalam (Islamic product)
F019	Qard hasan (Islamic product)
F020	Syndicated loans
F021	Revolving loans
F022	Lease Financing/ Operational
F025	(Lease of Benefits and Services)
F024	(Private Sector Sales on Deferred Networks)
F023	(Government Payment Authorizations - Ministry of Finance)
F026	(Sustainability Program Loans)

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Annex No. (8)

International Currency Codes (Disbursement Currency)

Code	Currency
USD	US Dollar
JOD	Jordanian Dinar
ILS	Israeli Shekel
EUR	Euro
GBP	British Pound
EGP	Egyptian Pound
AED	UAE Dirham
AUD	Australian Dollar
CAD	Canadian Dollar
JPY	Japanese Yen
SAR	Saudi Riyal
KWD	Kuwaiti Dinar
BHD	Bahraini Dinar
CHF	Swiss Franc
CYP	Cypriot Pound
DKK	Danish Krone
LBP	Lebanese Pound
NOK	Norwegian Krone
QAR	Qatari Riyal
SEK	Swedish Krona

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Annex No. (9)

Economic Sector

Code	Type
S1	Mortgage sector (Construction and Real Estate)
S2	Traders sector
S3	Industrial and mining sector
S4	Agricultural sector
S5	Utilities and public service sector
S6	Public sector (Government-related institutions)
S7	Financial sector
S8	Consumer loans sector
S9	Touristic sector

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Annex No. (10)

Customer Status Evaluation

Code	Type
0	Newly opened
1	Paid as agreed
2	One month (30 days) in arrears
3	Two months (60 days) in arrears
4	Three months (90 days) in arrears
5	Four months (120 days) or more in arrears
6	Provisions allocated
7	Repossession
8	Account is being pro rated or paid through a consolidation order
9	Written off debts

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Annex No. (11)

Periodic Installment Type

Code	Type
M	Monthly
Q	Quarterly
SA	Semi annually
A	Annually
OP	One Payment
W	Weekly

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Annex No. (12)

Legal Procedures

Code	Type
A	legal action has been taken
B	No Legal action has been taken

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Annex No. (13)

Interest Type

Code	Type
1	Fixed
2	Variable
3	Flat
9	without interest

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Annex No. (14)

Collateral Codes Provided

Code	Type
SC	Securities
RS	Real Estates
BG	Bank Guarantees
EM	Equipments & Machines
TR	Vehicles
DB	Discounted Bills
PM	Precious Metals
PN	Beneficiary Notes
CS	Cash
PG	Personal Guarantees
CG	Legal Entities Guarantees
LC	L/C
LC1	Warranties
AB	Acceptances
ID	Insurance Documents
SL	Salaries
GW	Governmental Guarantees
WF	Mutual Funds
DC	Deferred checks

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Annex No. (15)

Borrower Attributes

(Detailed list of borrower attributes from 1000 to 8009)

• 1000: Companies/ Companies registered with the Companies Registrar
• 1001: Tourism companies
• 1002: Educational companies and institutions registered with the Companies Registrar
• 1003: Commercial companies (General trade, import and export)
• 1004: Telecommunications and information technology companies
• 1005: Real estate companies
• 1006: Financial companies and banks
• 1007: Insurance companies
• 1008: Contracting and general works companies
• 1009: Public service companies
• 1010: Pharmaceutical and medical supplies companies
• 1011: Industrial companies (Food, beverages, cleaning materials)
• 2000: Government institutions
• 3000: Public sector individuals (Government employees)
• 3001: Police Department
• 3002: Preventive Security
• 3003: Civil Defense
• 3004: Intelligence Agency
• 3005: National Security
• 3006: Internal Security
• 3007: Government health sector employees
• 3008: Government education sector employees
• 4000: Private sector individuals (Private sector employees)
• 4001: Tourism company employees
• 4002: Private educational companies and institutions employees
• 4003: Commercial company employees
• 4004: Telecommunications company employees
• 4005: Real estate company employees
• 4006: Financial companies and banks employees
• 4007: Insurance company employees
• 4008: Contracting and works company employees
• 4009: Service company employees
• 4010: Pharmaceutical company employees
• 4011: Industrial company employees (Food, beverages, cleaning materials)
• 5000: Associations and clubs
• 5001: Associations in various forms
• 5002: Religious bodies
• 5003: International bodies
• 5004: Embassies and consulates
• 5005: Syndicates and labor bodies
• 6000: Artisans, free professionals, and traders (Representing private sector individuals including artisans, professionals, traders, engineers, doctors, lawyers, etc.)
• 6001: Shop owners
• 6002: Bakery owners
• 6003: Professionals and artisans
• 6004: Doctors
• 6005: Engineers
• 6006: Restaurant and café owners
• 6007: Restaurant and café workers
• 6008: Workers in agriculture, forestry, and fishing
• 6009: Workers in arts, entertainment, and recreation
• 7000: Students, housewives, trainees, etc. (Categories without fixed or variable verifiable income)
• 8000: Unregistered institutions
• 8001: Schools and educational institutions unregistered with the Companies Registrar
• 8002: Cafés and restaurants
• 8003: Engineering and law offices
• 8004: Commercial shops unregistered with the Companies Registrar
• 8005: Medical centers unregistered with the Companies Registrar
• 8009: Pharmacies