Regulatory Alerts2024-01-01
Palestine Monetary Authority Circular No. (2024/41): Countercyclical Capital Buffer
The Palestine Monetary Authority issued Circular No. (2024/41) to require all Palestinian banks to increase their countercyclical capital buffer to 1.588% of risk-weighted assets, pending specific implementing instructions. This adjustment directly addresses a 2023 study confirming an expanded granted credit gap, thereby strengthening the banking sector's resilience against economic fluctuations. Banks must apply this buffer according to forthcoming regulatory guidelines to maintain adequate capital coverage.
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