Regulatory Alerts2024-01-01
Instructions No. 17 Regarding the Licensing and Regulatory Framework for Digital Banks
The Palestine Monetary Authority issued Instructions No. 17 of 2024 to establish a comprehensive licensing and regulatory framework specifically governing digital banks operating in Palestine. The directive mandates a minimum paid-up capital of $25 million, enforces strict capital adequacy (14%) and leverage ratio (7%) thresholds, and imposes rigorous requirements on corporate governance, technology infrastructure, business continuity, and risk management. It further restricts credit concentration, related-party lending, foreign currency exposure, and investment activities while outlining detailed procedures for preliminary and final licensing approvals.
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