Result Based Management Framework - METAC

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IX. WEST BANK AND GAZA
A. Banking Supervision
Past Activities
With METAC’s assistance, the Palestine Monetary Authority (PMA) undertook a major
reform effort to improve the functioning of its credit registry over the following three
phases: (1) addition of comprehensive and detailed information on borrowers including
MFIs; (2) automating the credit registry; and (3) developing an internal credit scoring
system for borrowers. The PMA credit registry is considered one of the most effective
public credit registries in the region and became the second central bank credit registry
(after Malaysia) to offer internal credit scoring services.
In addition to the above, METAC also delivered significant TA in other banking
supervision areas, the most important of which are:
Advising on the organizational changes of the BSD.
Improving the system of supervisory call reports, developing an EWS based on
statistical data analysis, and developing stress testing regulations and models for
banks.
Training on Basel II requirements and guidelines and assisting in developing a
road map for Basel II implementation.
Training on various other offsite and onsite supervision issues.
Over the last year, METAC started a new TA project aimed at enhancing the risk-focused
features of PMA supervision. Hence, a METAC short-term expert is performing
peripatetic visits to the PMA to assist in developing a new risk-focused supervision
manual.
Objectives
Work Program
The PMA has been consistently enhancing its regulatory framework by issuing new
regulations to encompass all the latest developments in banking supervision standards. In
that context, the PMA issued many regulations that include, among others, regulations on
Basel II, corporate governance, business continuity, and licensing.