Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (132/2015)

To all banks operating in Palestine
Date: Sunday, October 25, 2015

Subject: Requirement to Modify Customer Classification on the Bounced Cheques System for Granting Facilities

Further to Circular No. 2010/2 dated 31/01/2010 concerning the regulation of the Bounced Cheques System, which was launched in early 2010, and in light of the noticeable increase in citizens' visits to public halls upon banks' requests to submit applications to modify their classification on the Cheques System in order to obtain banking facilities, where some banks require applicants for facilities to modify their classification on the system.

In this regard, we wish to clarify that the aforementioned instructions and any related subsequent instructions do not stipulate in any of their clauses that banking facilities may not be granted to customers classified on the Bounced Cheques System. The Palestine Monetary Authority's policy in this regard does not interfere with the credit policies of banks, leaving the decision-making regarding credit solely to the bank without any interference from any party.

Accordingly, please be advised that effective from the beginning of the upcoming month, November 2015, the Palestine Monetary Authority will not process or handle any such requests, and it is up to the bank to make the appropriate credit decision in accordance with its credit policy approved by the Board of Directors.

---

Public Relations and Market Discipline Department Palestine Monetary Authority

---

www.pma.ps

---

Ramallah - Palestine PO. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 Gaza - Palestine PO Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 Email: info@pma.ps