Regulatory Alerts2019-01-01
Instructions No. (51) of 2019 Regarding the Amendment of Instructions No. 7 of 2016 Concerning the Implementation of Capital Adequacy Requirements in Accordance with Basel II Regulations
The Palestine Monetary Authority issued Instructions No. (51) of 2019 to amend the implementation guidelines for Basel II capital adequacy requirements. The directive revises the eligibility criteria for assigning a preferential 75% risk weight to retail credit portfolio claims by replacing the previous conditions with specific exposure limits. Under the updated rules, total credit exposure to a single counterparty is capped at USD 200,000, while exposure to small and medium-sized enterprises is limited to USD 500,000, provided repayment relies on business rather than owner salary.
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