Regulatory Alerts2013-01-01
Circular No. 155 Update of Borrower Classification System - Version 3
The Palestine Monetary Authority issued Circular No. 155 to implement Version 3 of its Borrower Classification System, requiring all lending institutions to adopt updated credit risk assessment criteria effective December 15, 2013. The revision adjusts risk weights for bounced cheque statuses, relaxes corporate evaluation metrics to ease credit access, removes blacklist variables, simplifies collateral assessment, and introduces a specific interpretive rating for public sector employees with up to 30-day payment delays. Institutions must immediately disseminate these changes to credit information system users and align their internal risk grading tables with the revised weights to reflect current portfolio risks.
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