Regulatory Alerts2014-01-01
Circular No. 23: Requests for Credit Facilities Submitted to the Monetary Authority
The Palestine Monetary Authority issued Circular No. 23 to require all banks operating in Palestine to secure prior internal approval from their competent authorities before submitting credit facility requests to related parties, non-residents, or those involving credit concentration to the regulator. The directive mandates that banks strictly follow established internal authorization protocols to complete these applications prior to forwarding them for regulatory review. Consequently, the Monetary Authority will automatically reject and refuse to consider any applications submitted without this mandatory prior internal clearance.
Palestine Monetary Authority
Palestinian Monetary Authority
Circular No. (2014/23) To all banks operating in Palestine Date: Sunday, February 16, 2014
Subject: Requests for Facilities Submitted to the Monetary Authority
It has been observed recently that a number of banks operating in Palestine are submitting requests to obtain the Monetary Authority's approval for granting credit facilities to related parties or non-residents, or for grants outside Palestine, or for facilities involving credit concentration, before obtaining the necessary approvals from the competent authorities within the banks.
Accordingly, we inform you of the necessity to complete such requests, which includes obtaining prior approval from the competent authority within the bank in accordance with procedures, before submitting them for approval by the Monetary Authority. The Monetary Authority will not consider any requests submitted in violation of this requirement.
Supervision and Inspection Department Palestinian 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 Ramallah - Al Bireh P.O. Box: 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza P.O. Box: 4026 - Tel.: 08-2825713 - Fax: 08-2844487 www.pma.ps