ABP Holds a Reception to Honor Dr. Jihad Al-Wazir and Welcome New PMA Governor Mr. Azzam Shawwa

The Association of Banks in Palestine (ABP) held a reception at the Movenpick Hotel in Ramallah to honor Dr. Jihad-Al-Wazir on the occasion of the termination of his two terms as Governor of the PMA and to welcome the new Governor Mr. Azzam Shawwa. The reception was attended by the managers of the banks and the PMA. 

Chairman of ABP, Mr. Joseph Nesnas, commended Dr. Al-Wazir for his outstanding performance as Governor of the PMA during the two terms of office, highlighting the most important achievements under his leadership culminating in the development of the banking industry in Palestine. Mr. Nesnas welcomed the new Governor Mr. Azzam Shawwa and wished him all success, adding that he was the best successor to the best predecessor. 

Dr. Al-Wazir expressed his deep gratitude to ABP for organizing the reception, expressing his confidence in the continued PMA advancement towards achieving its goals and finalizing the significant projects that had been launched, given the firm grounds on which they were established and the highly qualified and experienced PMA staff in charge for their implementation. Dr. Al-Wazir thanked the banking sector for the genuine partnership with the PMA, which was especially evident during times of crisis, allowing the PMA and the banks to build a comprehensive and unparalleled system of crisis management.

Dr. Al-Wazir said: “I can say with all certainty that the PMA has managed to construct a comprehensive system ensuring the maintenance of financial stability. It also set the foundations for monetary stability in the future. We have succeeded in reinforcing and strengthening the banking system’s ability to confront risks by liquidating weak banks and raising banking system capital from USD 702 million to USD 1410 million; reducing loan default rate from 15.3 per cent end of 2007 to 2.5 per cent by mid-2015 –considered one of the best ratios worldwide; increasing the number of bank branches and representative offices from 114 to 274 branches and offices which contributed to boosting the banking system’s assets to USD 12 billion by end of July 2015. In addition, one of our most important accomplishments to promote local economic development was to deploy a significant portion of bank deposits placed abroad as investments in Palestine, pushing placements abroad down from 65 per cent to 34 per cent. Furthermore, the capital adequacy ratio, one of the most important financial stability indicators, was raised to reach 17 per cent; as opposed to the internationally accepted ratio of 11 per cent. One of our most outstanding achievements, of which we are very proud, was the foundation of the Palestine Deposit Insurance Corporation, which insures the deposits of 93 percent of all depositors. Moreover, the Palestinian banks share of the local market was raised from 33.8 per cent to 51.2 percent end of July 2015. The private sector was also boosted by increasing the bank lending to the private sector by 224 per cent and expanding private sector deposits with banks by 89.2 per cent.

Dr. Al-Wazir concluded his speech by thanking the banking system and all those working in it for the loyalty and devotion dedicated to serve the sector. He wished the new Governor Mr. Azzam Shawwa all success in his mission to lead the PMA, placing emphasis on his highly appropriate qualifications for the position and his relevant banking expertise. 

Mr. Shawwa thanked the ABP for organizing the reception, commending his predecessor Dr. Al-Wazir for the diligent efforts he made to develop the PMA, which secured its top ranking among regional counterparts. 

Mr. Shawwa asserted that he will keep up the work to promote financial stability in Palestine, strengthen the banking system and enhance PMA capabilities, in collaboration with stakeholders, particularly the banks.