Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (52) of 2019

Regarding the Amendment of Instructions No. 9 of 2018 Concerning

the Implementation of Capital Adequacy Requirements for Islamic Banks

Pursuant to the provisions of Law Decree No. (9) of 2010 concerning Banks, particularly Articles (33) and (72) thereof,
and in accordance with the powers vested in us,
and in the public interest,
we have issued the following instructions:

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Article (1)

Scope of Application

The provisions of these instructions shall apply to all banks licensed by the Palestine Monetary Authority to conduct Islamic banking business in Palestine.

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Article (2)

Claims within the Retail Credit Portfolio

The text of Condition (A and B) (contained in Paragraph 3.12.3) of the Capital Adequacy Implementation Guide for Islamic Banks, regarding the allowance of a preferential weight of 75% to claims classified within the retail credit portfolio according to regulatory standards, subject to fulfilling Conditions (A, B, C, and D), is amended as follows:

Such that the text of Condition (A and B) is replaced with the following text:

A. The total credit value to a single entity (whether an individual or multiple individuals linked by a relationship or common interest) shall not exceed USD 200,000 or its equivalent.

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Article (3)

Implementation and Enforcement

All competent authorities shall implement the provisions of these instructions according to their respective jurisdictions, and they shall apply from the date of their issuance.

Issued in Ramallah on this Wednesday, corresponding to 2019/01/30.

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Supervision and Evaluation Department
Palestine Monetary Authority

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Address:
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