Regulatory Alerts2008-01-01
Circular No. 85: Reliance on PMA Instructions and Decisions
The Palestine Monetary Authority issued Circular No. 85 to address public complaints regarding banks' refusal to provide credit facilities, checkbooks, or account services while improperly citing PMA regulations as justification. The circular mandates all banks to adhere to strict professional and transparency standards, requiring them to openly communicate the genuine reasons for denying customer requests. Additionally, the PMA commits to actively monitoring these complaints and enforcing appropriate regulatory measures in accordance with established procedures.
Palestine Monetary Authority
Palestine Monetary Authority
Circular No. (2008/85)
To all banks operating in Palestine
Date: Wednesday, June 25, 2008
Subject: Reliance on PMA Instructions and Decisions
The Palestine Monetary Authority has received a large number of complaints (written and telephone) from the public dealing with banks regarding various issues, including the reluctance of some banks to grant facilities/credit to their customers, fulfill their requests for issuing checkbooks, and refuse to open accounts for some clients or close them for reasons specific to the bank, citing PMA instructions as justification.
Given that the PMA's instructions are clear and aim to regulate the relationship between the bank and its clients on one hand, and to maintain the financial stability of the banking system on the other, the PMA instructs all banks to adhere to the highest standards of professionalism and transparency in their dealings with clients, and to frankly inform clients of the actual reasons for not fulfilling their requests.
The PMA will follow up on citizen complaints received regarding this matter and take appropriate measures as the situation dictates and in accordance with established procedures.
Banking Supervision 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
Ramallah - Al Bireh P.O. Box: 452 - Tel.: 02-2409920 - Fax: 02-2409922
Gaza - P.O. Box: 4026 - Tel.: 08-2825713 - Fax: 08-2844487