Appointment of Mr. Zaher Hmouz as Managing Director of the Palestinian Deposit Insurance Corporation

Dr. Jihad Al Wazir, Governor of PMA and Chairman of the Board of Directors of the Palestinian Deposit Insurance Corporation PDIC, announced that Mr. Zaher Hmouz will assume duties as first Managing Director of the corporation. He is assigned with all responsibilities and authorities necessary to administer work of the corporation which was established in accordance to law by Decree-Law No. (7) of 2013, issued on May 29, 2013 and has the status of a legal entity with legal capacity as well as financial and administrative autonomy.  

The Managing Director will have the responsibilities and authorities to implement the policies, strategies, and plans approved by the Board, implement the Board’s instructions, decisions, and directives to ensure that PDIC’s objectives are met, supervise PDIC’s executive body and monitor the effective implementation of day-to-day activities, manage the corporation’s investment as per the approved policies in the best and most judicious manner and represent the corporation before all official and unofficial authorities in Palestine and abroad.

Mr. Hmouz holds a master degree in accounting from Oklahoma City University, USA. He has a long established banking expertise of over 23 years. Last of his work positions was Assistant General Manager for Credit Facilities in Quds Bank. He was also assigned to senior positions in Cairo Amman Bank and is a member of the board of directors in numerous companies and institutions.

Dr. Jihad Al Wazir considered the appointment of the Managing Director a significant step towards the finalization of the establishment of the corporation. He stressed its significant consequence for the insurance of citizens’ deposits in licensed banks; particularly small depositors, and regarded the establishment of the corporation as indicative of the distinctive development of the Palestinian banking system and of financial stability successfully established by the PMA. In that regard, the Board of Directors has fixed the bank discount rate to 0.3 % and the ceiling of compensation at $10,000 for all commercial and Islamic accounts.

Al Wazir pointed out that the establishment of the corporation would not have been possible without the sound and good positions of all banks considering that the default ratio of the Palestinian banking system is 2.9%, the lowest amongst banking systems in the Arab World, and that capital adequacy exceeds 20%, which is a high and stable ratio. This indicates that banks have become more secure because of the corporation, in spite of the difficult political and economic situation.

PDIC seeks to achieve a number of objectives, most important of which are protecting the rights of bank depositors, enhancing confidence in the banking system, contributing to maintaining its stability and raising the level of public awareness of the deposit insurance system.