Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (279/2017)

To all banks operating in Palestine
Date: Wednesday, November 29, 2017

Subject: Requirements for Borrowers' Life Insurance

In light of numerous inquiries from banks regarding the life insurance requirements for borrowers stipulated in Responsible Lending Instructions No. (2016/02) dated 01/05/2016, please be advised of the following:

• Exemption from the life insurance requirement for borrowers is permitted in exchange for 100% cash collateral, provided that borrowers sign a written declaration confirming their consent and accepting responsibility for their decision, with the explicit condition that the cash collateral hold remains in place until the loan is fully repaid.

• The life insurance requirement for facilities/financing shall not be waived after a period has elapsed since their disbursement and the remaining repayment term has decreased to less than 48 months.

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Market Conduct Department
Palestine Monetary Authority

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