Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (51) of 2019

Regarding the Amendment of Instructions No. 7 of 2016 Concerning

the Implementation of Capital Adequacy Requirements in Accordance with Basel II Regulations

Pursuant to the provisions of Law Decree No. (9) of 2010 Concerning Banks, particularly Articles (33) and (72) thereof, and in accordance with the powers delegated to us, and in the public interest, we have issued the following Instructions:

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Article (1)

Scope of Application

The provisions of these Instructions shall apply to all banks licensed by the Palestine Monetary Authority to conduct banking business in Palestine.

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Article (2)

Claims within the Retail Credit Portfolio

The text of conditions (a and b) set forth in paragraph (4.12.3) of the Basel II Requirements Implementation Guide, concerning the eligibility to assign a preferential weight of 75% to claims classified within the retail credit portfolio according to regulatory standards, provided conditions (b, t, th) are met, is amended as follows:

Such that the text of conditions (a and b) is replaced with the following text:

a. The total credit value to a single counterparty (whether individuals or multiple individuals linked by a relationship or common interest) shall not exceed USD 200,000 or its equivalent.

b. The total credit value to a small or medium-sized enterprise shall not exceed USD 500,000 or its equivalent, provided that repayment is dependent on business income and not on the salary of the enterprise owner borrower.

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Article (3)

Implementation and Enforcement

All competent authorities shall, each within their respective purview, implement the provisions of these Instructions, which shall apply from the date of their issuance.

Issued in Ramallah on this day, Wednesday, corresponding to 2019/01/30.

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Supervision and Inspection Department
Palestine Monetary Authority

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Note:
The page contains the Palestine Monetary Authority stamp and an official signature.
At the bottom of the page, contact information is provided:

• Ramallah and Bethlehem:
  P.O. Box 452, Palestine P.O. - Ramallah and Al-Bireh Governorate info@pma.ps | Fax: +970 2 2415310 | Phone: +970 2 2415251

• Gaza:
  P.O. Box 4026, Palestine P.O. - Gaza
  Fax: +970 8 2844487 | Phone: +970 8 2825713

www.pma.ps