Regulatory Alerts2023-01-01
Instructions No. (18) of 2023 Regarding the Distribution of Dividends and Bonuses and the Establishment of Provisions for 2023
The Palestine Monetary Authority issued Instructions No. 18 of 2023 to mandate precautionary measures for licensed banks amid economic uncertainty stemming from the Gaza Strip conflict. The directives restrict cash dividend distributions to shareholders and foreign bank head offices for 2023, require conservative expected credit loss calculations with minimum 60% weighting for severe scenarios, and mandate 100% provisioning for impaired Gaza Strip exposures and finance leases. Banks must submit financial statement impact assessments by January 31, 2024, and face penalties for non-compliance under Decision-Law No. 9 of 2010.
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