Regulatory Alerts2011-01-01
Circular No. 135 Classification of Facilities for Disclosure Purposes in the Monthly Report
The Palestine Monetary Authority issued Circular No. 135/2011 to clarify the correct classification methodology for housing and mortgage facilities in monthly regulatory reports. The directive mandates that economic sector classification must be applied at the individual facility level rather than the borrower level to resolve discrepancies between the Credit Information System and the new real estate sector database. Banks and lending institutions are instructed to align their monthly facility files with this facility-level classification standard to ensure accurate regulatory disclosure.
Palestine Monetary Authority
Palestine Monetary Authority
Circular No. (135/2011)
To all banks operating in Palestine
Date: Monday, July 25, 2011
Subject: Classification of Facilities for Disclosure Purposes in the Monthly Report
Further to inquiries received from banks and lending institutions regarding discrepancies between the value of housing and mortgage loan facilities in the Credit Information System database and the new real estate sector system, which indicate that most of these discrepancies result from errors in classifying the facility sector, and with reference to Circular No. (2007/160) dated 28/10/2007 and the economic sector item described in paragraph three of Circular Annex No. (2) specifying economic sector types and their codes (S1 to S9), please be advised that the intent of this item is to classify the economic sector of the granted facility. This means that the economic sector classification in the monthly facilities file is at the facility level, not at the borrower level, as a borrower may have multiple facilities with different purposes.
Public Relations and Market Activities Department
Palestine Monetary Authority
Ramallah - Al-Bireh - P.O. Box: 452 - Tel: 02-2409920 - Fax: 02-2409922
Gaza - P.O. Box: 4026 - Tel: 08-2825713 - Fax: 08-2844487
E-mail: info@pma.ps
www.pma.ps