Regulatory Alerts2025-01-01
Palestine Monetary Authority Circular No. 5 of 2025: Periodic Review of the Borrower Classification System
The Palestine Monetary Authority issued Circular No. 5 of 2025 to mandate the periodic review of the borrower classification system for supervised institutions. This directive updates the regulatory framework by replacing previous guidelines, specifically Circular No. 158 of 2022, to ensure accurate risk assessment. The circular establishes the requirements for maintaining version V of the classification system to align with current supervisory standards.
PALESTINE MONETARY AUTHORITY
Circular No. (2025/5)
Date: 03 January 2025
Subject: Periodic Review of the Borrower Classification System
Reference: Circular No. (2022/158) dated 21 January 2022
To: All Supervised Institutions
The Palestine Monetary Authority (PMA) hereby issues this circular to update the periodic review of the Borrower Classification System. This circular supersedes Circular No. (2022/158) and establishes the requirements for the current version (Version V) of the classification system.
This directive aims to ensure that all supervised institutions maintain an accurate and up-to-date borrower classification system that reflects the current risk profile of their portfolios. Institutions are required to implement the provisions outlined in this circular immediately.
For further information, please contact the PMA.
Palestine Monetary Authority
Ramallah & Al-Bireh Governorate, Palestine P.O. Box 452 Postal Code: P6160675
Tel: +970 2 2415251 Fax: +970 2 2415310 Email: info@pma.ps Website: www.pma.ps