Regulatory Alerts2022-01-01
Circular No. 317 Regarding Instructions No. 02-2018
The Palestine Monetary Authority is amending Instructions No. (2018/02) to modify the calculation mechanism for the General Provision (GP), specifically restricting regulatory capital recognition to only the impact on the Stage 1 General Risk Reserve. This amendment will take effect by the end of 2023. Banks are required to factor this upcoming change into their 2022 dividend distribution decisions and capital planning processes.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2022/317)
To all banks operating in Palestine
Date: Wednesday, December 28, 2022
Subject: Instructions No. (2018/02)
With reference to the above subject, please be informed that the Authority is reviewing and amending Instructions No. (2018/02) dated April 1, 2018, including amendments to the provisions related to the calculation mechanism of the General Provision (GP). Specifically, only the impact of calculating provisions under the aforementioned Instructions on the Stage 1 General Risk Reserve will be recognized for regulatory capital requirement purposes. The amendment will take effect by the end of 2023. Accordingly, all banks are requested to take the above into consideration when making decisions regarding dividend distributions for the 2022 business results and capital planning.
Supervisory Group
Palestine Monetary Authority
Note:
www.pma.ps
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