Financial Stability

Financial Stability


Financial Stability for financial sector in Palestine is a key objective of PMA. This heads it's priorities like any other central bank in the world. PMA has incessantly expended
great efforts to improve and develop its capacity in order to reach the same high standards of operation as those in developed countries. PMA concerns that Financial and Banking sector in Palestine are able to face any risks or vulnerabilities that will affect negatively the growth and development of the economy. Furthermore, PMA aims to ensure that this sector effectively and efficiently performs it's given tasks.

Financial Stability definitions:

According to Bank of International Settlement )BIS) Financial Stability Defined as a characterized stable in the absence of excessive volatility, stress or crises.
In general, PMA express FS from its view that the ability to achieve balance between factors of Financial Sector that supervised by PMA which include (Banks, Specialized Credit Institution's, Money Changers, Payment Systems) that ensure integration with factors of Financial System and Financial Inclusion at national level, which encompass three main factors, First, "Financial Institution's" and its components (Bank, Insurance Companies, other financial Institution's). Second, Financial Markets – Capital and money market. Third, Infrastructures (legal, fiscal and accounting frameworks) that is the most important component of Financial System. All these factors work together to create a suitable financial environment to mitigate systematic risk.

Organizational Chart of Financial Stability Group:

Group of Financial Stability Consists of three Core departments In addition to Supervision of Payment Systems Unit, that work together to Achieve Financial Stability in Palestine.

PMA Enforcing Financial Stability through:

  • Effective Supervision on Institutions subject to PMA Supervision (Banks, Specialized Lending Institutions, and Money Changers).
  • Market Conduct and Financial Inclusion through performing Credit Bureau, Credit Scoring, Financial Awareness, and Postdated cheques system.
  • Develop an a comprehensive and Secured Infrastructure Payment Systems.


Financial Stability Group

1. Supervision and Inspection Department:

The Department aims to safeguard the banking sector by supervising and regulating banks, specialized lending institutions and money changers, protecting the depositor's money to ensure public trust with banks and specialized lending institutions which creates a fair competitive environment that contributes in a sustainable growth in the economy development and stability in the financial system. The Dept contains several divisions and unit to carry out the supervision and inspection tasks, which are the supervision and inspection divisions of local and foreign banks, Monitoring division of the Money Changers, Monitoring division of the specialized lending institutions, Licensing division, Macro Prudential division, Technological Monetary and Business Continuity unit.

2. Market Conduct Department:

The department aims to aware and educate citizens about their rights and duties regarding their banking transactions, follow up their complaints, managing credit information systems, credit rating and returned checks systems, In addition to follow up the development of products and banking services and their prices. Also to ensure transparency and full disclosure of these products and services in line with global developments and developments. The Dept contains three divisions: Consumers Awareness and Complaint Handling division which has two hall in Ramallah and Gaza, Analysis and Technical Support division, and Credits Operation System division.

3. Payment System Department:

The Department aims to achieve PMA`s goals in Financial Stability though keeping a safe and sound banking system, developing a comprehensive and Secured Infrastructure Payment Systems. The Dept contains three divisions: Banking Operations and Back Office division responsible for execute all daily transactions through RTGS System, SWIFT & Clearing. Payment System Administration division responsible for Administrate RTGS, Clearing Systems, and National switch system no 194. Support Policies and Payment System Development division responsible for preparing studies about payment systems and its regulations according International best practice in payment and settlement systems.

4. Payment System Oversight Unit:

Independent Supervisory Unit subsidiary of Financial Stability Group, It has been established, consistent with the Best Practices and Principles and International Standards, especially with regard to the separation of powers and avoidance of conflicts of interest. The Unit aims at ensuring the safety and efficiency of payment systems work through follow-up of these systems and evaluate their work and bring change in these systems in the event of it so summoned to ensure that both factors of efficiency and safety available in the work of these systems. It also aims at overseeing the payment systems operation to reduce systemic risk and other potential risks that faces work of payment systems, and to enhance the ease and smoothness in the work of payment systems, and consumer confidence multiple payment systems.
Oversight role is also in charge of making sure that the RTGS system complies with the principles for financial market infrastructures adopted in 2012.