Circular No. 67 on Expected Credit Losses

Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY

Circular No. (67/2024)

To all banks operating in Palestine

Date: Sunday, July 28, 2024

Subject: Expected Credit Losses

With reference to the above subject, and in light of the ongoing preparation of financial statements as at 30 June 2024 in accordance with international standards, particularly Standard (IFRS9), the Bank is requested to take the following measures:

A. Continue applying the requirements of Circular No. 18 of 2023 regarding Expected Credit Losses to the financial statements as at 30 June 2024.
B. Take into account Principle 2 of the requirements of Circular No. (2018/2) regarding the impact of forward-looking information, including macroeconomic factors, on assessing credit risk and measuring the level of provisions.
C. Adopt the macroeconomic indicators issued by the Palestine Central Bureau of Statistics when calculating Expected Credit Losses in accordance with their updates, and if indicators from other entities are adopted, provide our justification for the Bank's calculation results using those entities' indicators compared to the results using the Central Bureau of Statistics' indicators.
D. Submit the financial statements as at 30 June 2024 using the approved monthly form, in compliance with the standards as outlined above, within a maximum of 3 days from this date.

Supervision Group
Palestine Monetary Authority

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