PMA Obtains IADI Membership

The Palestine Monetary Authority, PMA, has obtained the membership of the International Association of Deposit Insurers, IADI, as a participant member, this membership proceeds an issuing of an act of Deposit Insurance Corporation, to take advantage of the  IADI`s experience. It is worth mentioning that the PMA has finalized the draft law for a deposits insurance institution in Palestine, and in proportion to basic rules that govern the establishment of effective deposits system, issued by Basel Committee on Banking Supervision and IDAI, and in line with the best international practices in the field.

The draft law has been earlier submitted to the national group for legislative plan at the Council of Ministers, which recommended the approval of the draft law. The council has decided in its weekly meeting no. 26 on 20/11/2012 to commit the draft law to be signed by Mr. President Mahmoud Abbas.

Once approved, the Palestinian Association of Deposit Insurance will launch its activity of insuring deposits at licensed banks, and within specific limit that will be announced in due course. It is expected that the Palestinian Association of Deposit Insurance would insure more than 92% of the total number of Depositors at the banking system in Palestine and in all currencies used in the local market, in addition to positive impact that the law will have on increasing deposits, thus; enhance a vital role played by the banking system in pushing development and promoting financial situation in Palestine.