Regulatory Alerts2021-01-01
Instructions No. 1-2020 on External Investments
The Palestine Monetary Authority issued Instructions No. 1-2020 to regulate and cap external investments by licensed banks in Palestine. The directive mandates banks to establish robust internal risk management frameworks, calculate external investment ratios against total deposits, and adhere to phased concentration limits ranging from 40% down to 25% by March 2023. It further restricts single-country exposure to 40%, aligns permissible credit ratings with major agencies, and requires prior regulatory approval for exceeding specified thresholds or investing in unrated entities.
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