Regulatory Alerts2024-01-01
Circular No. 106/2024: Rental Benefit Adjustment on Ijarah Muntahia Bittamlik Financing
The Palestine Monetary Authority issued Circular No. 106/2024 to instruct all Islamic banks operating in Palestine to refrain from increasing rental benefits on existing Ijarah Muntahia Bittamlik financing facilities. This directive, effective as of November 4, 2024, is based on a decision by the Supreme Board of Sharia Supervision dated October 24, 2024, and considers current economic circumstances. The suspension on increases is temporary and will be reviewed immediately once the underlying reasons cease to exist, subject to a subsequent decision by the Supreme Board of Sharia Supervision.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (106/2024)
To all Islamic banks operating in Palestine
Date: Monday, November 4, 2024
Subject: Rental Benefit Adjustment on Ijarah Muntahia Bittamlik Financing
Based on the decision of the Supreme Board of Sharia Supervision dated 24/10/2024, and in light of the current circumstances, it is mandated to refrain from making any increase in the rental benefit on existing Ijarah Muntahia Bittamlik financing facilities for customers. This decision shall be reviewed immediately once the reasons necessitating it cease to exist, based on a decision issued by the Supreme Board of Sharia Supervision.
Supervision Group
Palestine Monetary Authority
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
Postal Code: P6160675 | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps