Regulatory Alerts2023-01-01
Circular No. 222 Current Conditions and Developments
The Palestine Monetary Authority issued Circular No. 222/2023 requiring all Palestinian banks to adopt conservative credit loss provisioning methodologies in response to recent domestic economic disruptions. Banks must upgrade affected customer classifications, apply a 100% risk weight to severe scenarios, exclude non-land collateral for Gaza facilities, classify troubled debts in Stage 3 with 100% provisioning, and allocate an additional 1% of net exposures to the most impacted accounts. These measures must be reflected in financial statements as of September 30, 2023, with ongoing monitoring and supplementary provisions until further regulatory guidance is issued.
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