Regulatory Alerts2012-01-01
Instructions No. 2 for the Year 2012 Regarding the Mandatory Reserve Base
The Palestine Monetary Authority issued Instructions No. 2 for 2012 to reduce the mandatory reserve base requirements for outstanding credit facilities extended to five designated sectors operating within Jerusalem. The directive specifically targets construction and real estate, land, industry and commerce, agriculture and livestock, and tourism-related businesses to incentivize banks to finance local development projects. Compliance takes effect for the March 2012 reserve period, with banks receiving updated calculation files through the authority's secure digital exchange system.
Palestine Monetary Authority
Palestine Monetary Authority
Instructions No. (2012/02)
To all banks operating in Palestine Date: Wednesday, March 21, 2012
Subject: Mandatory Reserve Base
In order for the Palestine Monetary Authority to encourage banks to strengthen the resilience of our people in the holy city of Jerusalem, by providing the necessary financing for their development projects, and to incentivize banks to extend credit in Jerusalem, it has been decided to reduce the outstanding balance of facilities granted to the sectors listed below within the city of Jerusalem from the mandatory reserve base:
- Construction and real estate sector.
- Land sector.
- Industry and commerce sector.
- Agriculture and livestock sector.
- Tourism, restaurants, and hotels sector.
Accordingly, banks will be provided with a new file outlining the new mechanism for calculating the mandatory reserve, through the file exchange service between the banks and the Palestine Monetary Authority.
The provisions of these instructions shall take effect as of the March 2012 reserve, and any provisions conflicting with them are hereby repealed.
Supervision and Inspection Department Palestine Monetary Authority
Ramallah - Al Bireh P.O.Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps Ramallah - Al Bireh - P.O. Box: 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box: 4026 - Tel.: 08-2825713 - Fax: 08-2844487