Regulatory Alerts2025-01-01
Circular No. 21: Periodic Review of Borrower Classification System
The Palestine Monetary Authority issued Circular No. 21 to mandate a periodic review of the Borrower Classification System across regulated financial institutions. The circular requires banks and financial entities to update their internal risk assessment frameworks, conduct regular portfolio evaluations, and submit compliance reports according to the revised Version V criteria. These changes standardize borrower risk categorization, enhance regulatory oversight, and ensure consistent application of capital adequacy requirements throughout the Palestinian banking sector.
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