Regulatory Alerts2025-07-17
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Circular - Banks - Outputs of the First Meeting - 2025
The Palestine Monetary Authority requires banks to establish an internal sustainable finance working team comprising key functions such as strategic planning, risk management, and operations. Banks must designate their sector-level team representative as a member of this internal group to ensure coordination and must submit the team's charter and member list to the Authority within two weeks via email. The circular emphasizes aligning with the Authority's sustainable finance roadmap and integrating ESG principles to address environmental and social challenges.
PALESTINE MONETARY AUTHORITY
Circular No. (87 / 2025) To all banks operating in Palestine Date: Tuesday, 05 August, 2025
Subject: Outputs of the First Meeting of the Sustainable Finance Working Group
Further to Circular No. (30/ 2025) regarding the formation of the Sustainable Finance Working Group for the financial sector, and based on the outputs of the first meeting of the Sustainable Finance Sector Working Group held on 17/07/2025, with the participation of representatives from banks and specialized lending institutions, during which the current state of the sector in the field of sustainable finance was reviewed, highlighting the main challenges and key implemented initiatives,
In addition to discussing the vision and future directions, we would like to emphasize the following outputs of the meeting:
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Proceeding with the implementation of the Palestine Monetary Authority's sustainable finance roadmap as a strategic opportunity for expansion, investment, and mobilization of funds, especially in light of the trend of many international entities towards requiring compliance with sustainable development goals and Environmental, Social, and Governance (ESG) standards as a basic condition for obtaining financing or entering into investment partnerships. Additionally, it is necessary to keep pace with international developments in this field, which contributes to enhancing the reputation and status of the Palestinian financial sector at both the regional and international levels.
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The role of the working group in enhancing coordination and consultation between the Palestine Monetary Authority and the financial sector, unifying related concepts and terminology, and crystallizing a shared understanding that contributes to setting unified and integrated policies, in addition to unifying efforts towards actively responding to environmental and social challenges.
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The importance of enhancing internal consultation and coordination at the bank level in this field, through: a. Forming an internal working group concerned with sustainable finance, which should include key relevant functions, especially strategic planning and product development, risk management, operations, finance, marketing, human resources, and others.
b. The bank's representative in the financial sector's sustainable finance working group - pursuant to Circular No. (30/ 2025) - must be a member of the internal team to ensure full coordination with the outputs of the financial sector working group.
c. The team shall undertake, at a minimum, the following tasks:
- Assessing the bank's current status in the field of sustainable finance and managing financial risks related to climate.
- Identifying gaps and related challenges, and preparing a vision and action plans aimed at enhancing the integration of sustainable finance principles and practices into strategies, policies, and internal procedures across various levels and functions within the bank.
- Contributing to the unification of concepts, capacity building, and increasing internal awareness.
d. The necessity of providing the Palestine Monetary Authority with the internal team's charter and specifying its members within two weeks of its establishment, via the following email address: GF-CCR@pma.ps.
We also attach to you a set of important reference documents in the fields of climate change, climate finance, and sustainable finance, which we believe will contribute to supporting your efforts towards integrating concepts in this field.
The Supervisory Group Palestine Monetary Authority
Attachments:
- Minutes of the First Meeting of the Sustainable Finance Working Group.
- The presentation shown during the aforementioned meeting.
- Climate and Development Report for the State of Palestine (CCDRs).
- Nationally Determined Contributions (NDCs).
- Sustainable Finance Roadmap.
Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452 | Phone: +970 2 2415251 | Fax: +970 2 2415310 | Postal code: P6160675 | info@pma.ps | www.pma.ps
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