Regulatory Alerts2015-02-15
Added · Updated
Instructions No. 2 of 2015 on Credit Granting Determinants and Conditions
The Palestine Monetary Authority issued Instructions No. 2 of 2015 to establish strict determinants and conditions for granting credit to banks operating in Palestine. The regulations prohibit credit secured by a bank's own shares, mandate specific limits for consumer credit and overdrafts, and impose concentration risk caps tied to the bank's capital base. Additionally, the directives require prior regulatory approval for cross-border credit, foreign bank head office lending, and credit write-offs, while enforcing strict disclosure and collateral possession disposal timelines.