The PMA continues its efforts to assess the damages caused by the war on the banking sector in the Gaza Strip.

The PMA affirms its ongoing efforts to assess the war damage on the assets of the banking sector in the Gaza Strip. This includes the destruction of headquarters and buildings due to bombardment, as well as thefts targeting several bank branches. At the same time, it emphasizes that providing accurate data on the reality of what happened requires a complete cessation of military activities.

In a statement released by his office today, Sunday, Dr. Feras Milhem, Governor of the PMA, reaffirmed the strength and resilience of the Palestinian banking sector. He emphasized its capacity to withstand even the most extreme shock scenarios. He highlighted that the banking sector's resilience has been strengthened after implementing the PMA's instructions to banks concerning hedging and building reserves to mitigate potential losses. Furthermore, banks have been instructed to refrain from distributing cash dividends until the extent of losses is fully assessed, and simultaneously reinforcing the regulatory capital allocated to address potential losses.

The Governor emphasized that the PMA's instructions and their impact on the financial positions of banks have reinforced public confidence in the banking sector. This is reflected in the continuous increase in deposits despite the unprecedented exceptional circumstances.

He further clarified that since the first day of the war on the Gaza Strip, the PMA has been preparing a comprehensive plan to deal with the expected negative effects of the war on the banking sector. This plan includes ensuring the readiness of banks to operate once military activities cease. The plan has been partially implemented during the initial ceasefire days.

The Governor noted that the challenges escalated after the complete or partial destruction of most bank branches in the region, rendering them out of service. In addition, unknown parties engaged in activities contrary to our people's and society's values, including looting and theft of the contents of the destroyed branches, including cash.

The PMA urges the Palestinian public not to be misled by misinformation propagated by unidentified sources regarding the banking sector. It affirms that it will promptly provide information and updates to the public through official statements. It is worth noting that Gaza's share of the total banking sector assets does not exceed 8%. Furthermore, all depositors' funds are guaranteed by the Palestine Deposit Insurance Corporation in accordance with the law.