Regulatory Alerts2016-01-01
Instructions No. (2) of 2016 Regarding Responsible Lending
The Palestine Monetary Authority issued Instructions No. 2 of 2016 to establish mandatory and guideline standards for responsible lending by banks and specialized financial institutions operating in Palestine. The regulations require service providers to align credit products with borrowers' repayment capacities, enforce transparent disclosure of all interest rates, fees, and contractual terms, and prohibit misleading advertising and unilateral contract modifications. Additionally, the instructions mandate comprehensive pre-disbursement credit assessments, guarantee the provision of free credit certificates and clear contract documentation, and ensure Arabic remains the official language for contract interpretation to protect consumer rights.