PMA Issues a Statement on the So-called (Production Bank) in Gaza Strip

21/05/2013, Ramallah - The Palestine Monetary Authority stated that the so-called (Production Bank), which has been recently announced in Gaza Strip, has not applied for a license to initiate banking business in accordance with the provisions of the Palestine Monetary Authority Law 2/1997 and Banks Law 9/2010.

Given its concern for the soundness and stability of the banking system and for the safety of depositors' funds, the PMA asserts that practicing banking business that is associated with the acceptance of deposits entails observance of proper capital requirements and specific banking criteria. These are not satisfied by the institution mentioned above. Such criteria are enforced by PMA in order to guarantee banks' capacity to bear and address losses, whether expected or unexpected.

Hence, the PMA calls upon all citizens to refrain from dealing with the institution mentioned above; it also declares that it would not assume any responsibility for any losses incurred by dealing with that institution.

The PMA always encourages the establishment of specialized lending institutions (traditional and Islamic) that serve the Palestinian public by fighting poverty and unemployment and providing financial services to the marginalized and disadvantaged groups. The PMA was surprised that the so-called (Production Bank) has not duly applied for a license, whether according to banking capital requirements or capital requirements of lending firms that do not accept deposits. In this regard, the PMA asserts that it will consider any licensing application that complies with the appropriate law and respective regulations.