Regulatory Alerts2020-01-01
Instructions No. 37 of 2020 Regarding Quarterly Report Requirements, Interim Data, and Monthly Closing
The Palestine Monetary Authority issued Instructions No. 37 of 2020 to standardize and enforce transparency and disclosure requirements for specialized lending institutions. The directive mandates that licensed institutions submit unified quarterly reports via email by the 15th working day of each quarter, designate dedicated contact officers for regulatory correspondence, and finalize monthly financial closings by the third working day of the subsequent month. Additionally, it requires institutions to formally request approval for externally audited interim data by August 31 annually while repealing five prior supervisory instructions to consolidate regulatory reporting frameworks.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (34) of 2020
Regarding Quarterly Report Requirements, Interim Data, and Monthly Closing
Based on the provisions of Decision No. (132) of 2011 on the Licensing and Supervision System for Specialized Lending Institutions, particularly Article (22) thereof, and in accordance with the authorities delegated to us, and in pursuit of the public interest, we have issued the following Instructions:
Article (1)
Definitions
The following words and phrases, as used in these Instructions, shall have the meanings specified below, unless the context indicates otherwise:
- Institution: A specialized lending institution licensed by the Palestine Monetary Authority.
- Quarterly Report: The unified report (CALL REPORT), the provision schedule report, the database report, and the interest and commissions report.
- Interim Data: The audited data prepared by the Institution's external auditor for the period ending on June 30 of each year.
Article (2)
Scope of Application
The provisions of these Instructions shall apply to all specialized lending institutions licensed by the Palestine Monetary Authority.
Article (3)
Objective
These Instructions aim to regulate and enhance the principles of transparency and disclosure in the financial statements of specialized lending institutions.
Article (4)
Quarterly Report
The Institution shall comply with the following:
- Prepare the Quarterly Report in accordance with Annex No. (1).
- The Institution's role shall be limited to data entry only, without making any modifications to the approved Quarterly Report file.
- The financial system must be capable of automatically generating the Quarterly Report and any necessary amendments thereto.
Article (5)
Quarterly Report Contact Officer
The Institution shall comply with the following:
- Appoint an experienced employee to act as a contact officer for communicating with the Palestine Monetary Authority regarding the correction of observations, answering inquiries, and making amendments related to the Quarterly Report.
- Appoint a substitute employee to act on behalf of the contact officer in their absence, and notify the Palestine Monetary Authority of any amendments or updates regarding this appointment.
Article (6)
Submission of the Quarterly Report
The Institution shall comply with the following:
- Submit the Quarterly Report to the Palestine Monetary Authority within a maximum period of the fifteenth working day following the end of each quarter, via email (scdivision@pma.ps).
- Respond to all observations and inquiries, and provide the Palestine Monetary Authority with the amended version of the Quarterly Report within a maximum period of (3) three days from the date of sending the observations to the Institution.
Article (7)
Interim Data
The Institution shall comply with the following:
- Submit a written application to the Palestine Monetary Authority for approval to adopt the Interim Data within a maximum period of August 31 of each year.
Article (8)
Monthly Closing of Financial Data
The Institution shall comply with the following:
- Close the loan and compensation portfolio at the end of the last working day of each month.
- Close the Institution's other accounts and prepare reconciliations within a maximum period of the third working day of the following month.
Article (9)
Repeal
The following are hereby repealed:
- Instruction No. (2016/164) regarding supervisory requirements for quarterly financial data.
- Instruction No. (2019/36) regarding interim financial data.
- Instruction No. (2018/101) and Instruction No. (2019/25) regarding monthly closing.
- Instruction No. (2014/37) regarding unified financial and statistical data.
- Any provision conflicting with the provisions of these Instructions.
Article (10)
Penalties
Any person who violates the provisions of these Instructions shall be penalized in accordance with the provisions of Decision No. (132) of 2011 regarding the licensing and supervision system for specialized lending institutions.
Article (11)
Implementation and Enactment
All competent authorities shall, within their respective jurisdictions, implement and apply the provisions of these Instructions from the date of their issuance.
Issued in Ramallah on 2020/9/9.
Financial Stability Group
Palestine Monetary Authority
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Tel: +970 8 2825713
www.pma.ps
INTERNAL
Annex No. (1) Regarding Quarterly Reports:
- Unified Financial and Statistical Data Call Report
- Quarterly Database File
- Provision Schedule Report
Palestine Monetary Authority
Supervision & Inspection Department
Call Report
| MFI Name | |
|---|---|
| MFI Code | FALSE |
| Data Period | |
| Legal Purpose |
Balance Sheet
| YEAR | |
|---|---|
| QUARTER |
| Ref. | X-Ref. | Account Name | Amount |
|---|---|---|---|
| B1 | Cash | ||
| B2 | Deposits | 0 | |
| B3 | Current Deposits | ||
| B4 | Time Deposits | ||
| B5 | Net Conventional Loan Portfolio | 0 | |
| B6 | Gross Conventional Loan Portfolio | ||
| B7 | Provision for Loans Impairment | ||
| B8 | Net Islamic Loan Portfolio | 0 | |
| B9 | Gross Islamic Loan Portfolio | ||
| B10 | Provision for Loans Impairment | ||
| B11 | Grants Receivables | ||
| B12 | Other Assets | ||
| B13 | Net Fixed Assets | ||
| B14 | Total Assets | 0 |
| B15 | | Short-Term Debt | | | B16 | | Unearned Revenue | | | B17 | | Temporary Restricted Contributions | | | B18 | | Other Short-term Liabilities | | | B19 | | Long-Term Debt | | | B20 | | Provision for Employees Indemnity | | | B21 | | Other Liabilities | | | B22 | | Total Liabilities | 0 |
| B23 | | Paid-in Capital | | | B24 | | Reserves | 0 | | B25 | | Risk Reserve | | | B26 | | Other Reserves | | | B27 | | Dividends to be Disburse | | | B28 | | Profit/Loss for Current year | | | B29 | | Retained Earnings | | | B30 | | Total Equity | 0 | | B31 | | Total Liabilities & Equity | 0 | | | | Validation | 0.000 |
Please fill Only in the White Cells
Income Statement
| YEAR | |
|---|---|
| QUARTER |
| Ref. | X-Ref. | Account Name | Amount |
|---|---|---|---|
| I1 | Operating Revenues | 0 | |
| I2 | Revenue from Conventional Loans | 0 | |
| I3 | Interest on Loan Portfolio | ||
| I4 | Fees & Commissions on Loan Portfolio | ||
| I5 | Revenue from Islamic Loans | 0 | |
| I6 | Returns from Islamic Loans | ||
| I7 | Fees & Commissions on Loan Portfolio | ||
| I8 | Other Operating Revenues | ||
| I9 | Financial Expenses | 0 | |
| I10 | Interest & Fees Expense on Borrowings | ||
| I11 | Other Financial Expenses | 0 | |
| I12 | Net Financial Income | 0 | |
| I13 | Impairment Losses on Loans | ||
| I14 | Value of Loans Recovered | ||
| I15 | Operating Expenses | 0 | |
| I16 | Personnel Expenses | ||
| I17 | Administrative Expenses | 0 | |
| I18 | Depreciation Expenses | ||
| I19 | Other Administrative Expenses | ||
| I20 | Net Operating Income | 0 | |
| I21 | Net Non-Operating Gains/Losses | 0 | |
| I22 | Non-Operating Gains | ||
| I23 | Non-Operating Losses | ||
| I24 | Net Income before Taxes | 0 | |
| I25 | Taxes | 0 | |
| I26 | Net Income After Taxes & before Donations | 0 | |
| I27 | Donations | 0 | |
| I28 | Donation Revenues | ||
| I29 | Donation Expenses | 0 | |
| I30 | B28 | Net Income after Taxes and Donations | 0 |
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