Regulatory Alerts2013-01-01
Circular No. 154 Update of the Borrower Classification System - Version 3
The Palestine Monetary Authority issued Circular No. 154/2013 to implement Version 3 of the Borrower Classification System, introducing key amendments to credit risk assessment frameworks effective December 15, 2013. The update adjusts conversion weights for bounced cheque statuses, relaxes corporate evaluation criteria by lowering multi-source facility risk weights and introducing a 60% debt-to-capital threshold, and eliminates distinctions for blacklist/restricted persons and collateral types. Additionally, it adds a specific evaluation interpretation for public sector employees with 30-day payment delays and revises the overall risk grades table to better align with the Palestinian banking environment's portfolio risk profile.
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