Regulatory Alerts2022-01-01
Circular No. 157: Updated Version of the Borrowers' Credit Classification System
The Palestine Monetary Authority issued Circular No. 151/2022 to implement Version V of the Borrowers' Credit Classification System, introducing key amendments to enhance credit access for SMEs, youth, and women while refining risk weighting models. The updated framework modifies individual and corporate scoring variables by incorporating gender and age factors, adjusting collateral and default settlement metrics, and removing outdated predictive indicators to better reflect the Palestinian banking environment. Banks are mandated to disseminate these changes to credit information system users and fully operationalize the revised system effective July 31, 2022.
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