Regulatory Alerts2025-01-01
Circular No. (65) Countercyclical Capital Buffer
The Palestine Monetary Authority postpones the implementation of the new countercyclical capital buffer rate until 2027, following a 2024 credit gap report and stakeholder consultations. This decision delays the previously proposed buffer increase that was intended to address the widening divergence between credit growth and real economic performance. The authority will reassess the buffer value next year through a comprehensive review of the updated credit gap.
Palestine Monetary Authority PALESTINE MONETARY AUTHORITY
Circular No. (65 / 2025) To all banks operating in Palestine Date: Tuesday, June 24, 2025
Subject: Countercyclical Capital Buffer
Following the 2024 Credit Gap Report in Palestine, which revealed a widening gap between credit growth and real economic performance, thereby necessitating an increase in the countercyclical capital buffer, and subsequently the draft instructions shared with the Banks Association for consultation, and following the comments and suggestions received regarding this matter and the consultative meeting held on 2025/06/16, it has been decided to postpone the implementation of the new countercyclical buffer rate until 2027, with the buffer value to be reassessed through a review of the credit gap during the coming year.
Supervisory Group Palestine Monetary Authority