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.
PALESTINE MONETARY AUTHORITY
Circular No. 21: Periodic Review of Borrower Classification System
Reference: (2025/2xx) | Document Ref: (2022/157)
Date: March 03, 2025
This circular outlines the mandatory periodic review of the Borrower Classification System (Version V) for all regulated financial institutions. It establishes updated classification criteria, mandates regular portfolio assessments, and defines compliance reporting timelines. Financial entities must align their internal risk frameworks with the revised standards to ensure accurate borrower risk measurement and regulatory adherence.
Key Requirements:
- Apply the updated Version V classification criteria to all borrower portfolios.
- Conduct periodic reviews and submit required regulatory reports on schedule.
- Maintain consistent risk categorization across banking operations.
Contact & Address Details:
Ramallah & Al-Bireh Governorate, Palestine
P.O. Box 452 | Email: info@pma.ps
Fax: +970 2 2415310 | Tel: +970 2 2415251
Postal Code: P6160675