Regulatory Alerts2021-01-01
Instructions No. 12 of 2021 on Incentivizing Banks to Finance Housing in the Jerusalem Governorate
The Palestine Monetary Authority issued Instructions No. 12 of 2021 to incentivize licensed banks to extend housing financing within the Jerusalem Governorate. The directive requires qualifying retail housing loans to be excluded from mandatory reserve calculations and assigned a 35% credit risk weight for capital adequacy purposes, irrespective of collateral type. Furthermore, banks must positively consider 100% collateral recognition for provisioning when a guarantor backs these loans, with all measures taking immediate effect upon issuance.
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