Regulatory Alerts2009-01-01
Instructions No. 1 of 2009 Regarding the Cancellation of the Interest or Return Cap on Facilities and Financing
The Palestine Monetary Authority issued Instructions No. 1 of 2009 to formally abolish the statutory 9% cap on interest and return rates for banking facilities and financing. This directive mandates that all interest and return rates be determined through free market competition among banks, requiring financial institutions to immediately adjust their internal policies and accounts to ensure full regulatory compliance. The Authority will actively monitor and enforce adherence to this deregulation by continuously tracking the interest rates charged to customers.
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