Based on the recommendations of the Palestine International Banking Conference 2013, Palestine Monetary Authority decided some procedures to stimulate lending to Small and Medium Enterprises in Palestine, which will contribute in empowering the SMEs sector, create new job opportunities, reduce the percentage of unemployment, and encourage pioneering among companies.

Therefore, PMA issued a circular to the banks on April 16, 2013, to waive the earlier cash payment which is 10% from the debt of the classified credit facilities, and this will apply only on the enterprises that meets the SMEs' definition which had been adopted lately by the banks, which consider the companies that have maximum 25 employees with an annual income that don't exceed seven million dollars. PMA also waived banks from the 1.5% general reserve requirement as an incentive to increase lending opportunities to the SMEs that meets the above definition.

Dr. Al Wazir - Governor of PMA, said that these procedures took place to promote the financial inclusion and as a follow up to the recommendations of the International Banking Conference 2013 that was held in Jericho on last February.