Regulatory Alerts2026-01-01
Instructions No. (3) of 2026 on Amending Instructions No. (2) of 2015 Regarding Credit Granting Determinants and Controls
The Palestine Monetary Authority issued Instructions No. (3) of 2026 to amend the credit granting determinants and controls under its 2015 framework. The revised regulations prohibit banks from extending certain secured or unsecured credit to subsidiaries, distressed debtors, and non-residents without prior approval, while capping aggregate share purchase financing at 10% of the private sector portfolio and 10% of capital for unlisted Palestinian companies. Furthermore, the amendments mandate comprehensive risk analysis, minimum 50% tangible collateral, Sharia compliance for Islamic banks, and enhanced disclosure requirements to strengthen credit concentration risk management.
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