Palestine Monetary Authority Launches Credit Scoring System
The Palestinian Monetary Authority Launched a new system for credit scoring at a ceremony held specifically for this purpose on Monday July 5, 2010 in both Ramallah and Gaza via video conferencing system. It was attended by some Arab and foreign ambassadors and representatives of the diplomatic missions accredited by the Palestinian National Authority and representatives of the company Credit Info Shufa, Messrs. Powell and Haakon and representatives of international financial institutions and local communities, trade unions, local bodies, banks and lending institutions.
During the celebration, Dr. Jihad Al Wazir, Monetary Authority's governor, welcomed the guests and said that the responsibility rests on the central banks and monetary authorities is very large starting from the duty to maintain the stability of the financial system and thereby enhancing and activating the investment movement to create the banking environment to grant the required facilities ranging from small and micro enterprises ending with the long-term infrastructure.
It is my pleasure that you participated today in our celebration for launching the new credit scoring system, and we will meet after next Ramadan, God willing, for the launch of the national payments system.
He noted that a few days ago he displayed the pioneering experience of the Palestinian Monetary Authority to the representatives of Arab central banks and some international financial institutions within the framework of the successes achieved before and after the tribute of the Palestinian experience in the World Bank report issued recently, during a workshop held in Abu Dhabi, organized by the Arab Monetary Fund and International Finance Corporation, where the Palestinian experience was praised from all attendees.
He said: I proudly refer to the consensus of specialists and experts in this area and their recognition of the Monetary Authority acting as a leader in this area at the level of central banks in the Middle East and North Africa, which is in the second place in the world out of 65 national central banks after the Malaysian central bank to develop a special systems specialized in credit scoring and provided to serve the banks and specialized lending institutions.
He added that these achievements call us to persevere always to keep abreast of developments in the global banking industry so as to keep the banking system safe and sound, taking into consideration our duty towards the general public dealing with the banking institutions in this area, both in terms of promoting awareness and banking culture, or insure the necessaries to protect them in implementing their banking operations. The Monetary Authority assures you that the process of developing is continuing and will not stop when launching this system or other as long as the desired results of development processes are achieved and has a positive impact directly on the performance of financial institutions and credit portfolios.
He also stressed that the results achieved requires us to strengthen our efforts and capabilities and develop our relations with international financial institutions to maintain our achievements, investments in systems and staff career.
Dr. Jihad Al-Wazir thanked all who contributed to the completion of this project especially the Credit Info Shufa Company, Monetary Authority staff, Banks Association, banking system and specialized lending institutions for their contributions in fulfilling these achievements. He formally announced the starting date of the Credit Scoring System as of Thursday, 07/08/2010.
Mr. Powell Randall, CEO of Credit Info Shufa company that worked on the establishment and development of the system, praised the relationship between their company and Monetary Authority and its efforts to develop regulatory regimes to be used by banks and lending institutions, he also indicated stages of development of the system from the company and hailed the data supplied by the company compared with other countries.
Mr. Nabil Abu Diab, General Manager of the Banks Association in Palestine, expressed his thanks and appreciation to the Monetary Authority on the progress and continued development of control systems to serve and help banks to take the decision and on the continued cooperation with banks, he also addressed the workshop held by the Arab Monetary Fund in Abu Dhabi to explain Palestinian experience in credit systems that are widely appreciated by the attendees of the central banks and international financial institutions.
Mr. Ali Faroun, consultant business system development, project director from the Monetary Authority displayed a detailed presentation on the principles and rules of the establishment of the system and mechanism of action and its benefits to the Monetary Authority, users of the banking system, lending institutions and borrowers. His presentation included an explanation of a study case of credit scoring system, indicating the concept of evaluation degree, the probability of defaulting and the degree of risk exposed by the client according to the data available to the Monetary Authority of borrowers and their guarantors. The presentation was concluded by showing the audience the future projects of Credit Bureau office.
At the end of the ceremony, two understanding memoranda's were signed, one between banks, and the second between lending institutions, regarding the Credit Bureau System.