Ramallah – His Excellency Mr. Azzam Shawwa, the Governor of Palestine Monetary Authority, opened today workshop introducing the new electronic clearance system, which is expected to be launched and operated by the end of 2018. Journalists and representatives of media outlets and directors from PMA took part in the workshop.
Mr. Shawwa affirmed in the opening remarks that developing the electronic clearance system, which was a quantum leap in banking business, was part of the endeavor of Palestine Monetary Authority to develop the infrastructure of the banking system by introducing multi banking systems and programs and services and keeping abreast of global banking developments.
Mr. Shawwa said that shifting from the current mechanical clearance system to the electronic clearance system will increase the speed of the cycle of money and cash liquidity in the local economy. He explained that clearance of checks would take one working day rather than three and clients could collect checks amounts within 24 hours of the their due date, which would make collection of checks safer by reducing the long clearance time and contribute to increasing trust in checks as instruments of payment.
Mr. Shawwa said that Palestine Monetary Authority had issued instructions to banks to enhance security specifications of checks as requirement of using the electronic clearance system to facilitate clearance, end check fraud, and to reduce losses from fraud in the banking and economic sector.
Mr. Shawwa addressed future plans of Palestine Monetary Authority to develop electronic payments systems for the Palestinian banking system such as expanding the development of the National Switch System to include sale points across Palestine and introduce payment using mobile phone to enable users to pay and transfer small amounts of money using their mobile phones. “The achievements of Palestine Monetary Authority have noticeable impact on the performance indicators of the Palestinian banking system and its effective contribution to the developments in the Palestinian economy. The net assets of the banks that operate in Palestine by end of September this year registered $15.7 billion and the overall direct credit facilities hit $8.3 billion and clients’ deposits in the banks that operate in Palestine recorded approximately $12.2 billion in the same period,” added Mr. Shawwa.
Mr. Shawwa expressed appreciation to journalists and affirmed the importance of their role in spreading information; especially banking and economic information, in the society by streamlining such information to increase economic knowledge and culture. Mr. Shawwa also addressed the interest of Palestine Monetary Authority to inform the press of all new developments in the Palestinian banking sector.
Mr. Riyad Awwad, Director of the Payment Systems Department, briefed the workshop about the new electronic clearance system, its objectives, and the steps taken by Palestine Monetary Authority to prepare the banks that operated in Palestine to start using the new system. Journalists were given opportunity to ask questions and make inquiries during the workshop.