The Governor of the Monetary Authority, Dr. Firas Melhem, announced an increase in the capital of the Monetary Authority to $200 million against $120 previously, validated by President Abbas and on the recommendation of his board of directors.
The Governor stressed that this important step would facilitate the implementation of digital transformation plans, and allow more funds to be injected into the various microfinance programs, with the ultimate objective of increasing employment for young people and women. .
The Governor recalled that the Palestinian banking sector is stable and solid, and that its financial and banking indicators are among the best in the region: “The Monetary Authority has managed to apply the best international standards in banking sector supervision and to build financial safety nets with the aim of safeguarding depositors’ funds and enhancing the stability of the financial system,” the Governor added, noting that the banking system is the central engine of economic growth.
Banking data shows that banks have liquidity that allows them to continue financing all economic sectors; the credit rate has reached around 65.5% and default rates are below 4.2%. The capital adequacy ratio is around 16.7%.
The health crisis and the return of clearence have greatly increased the exposure of banks to the public sector. The value of government loans is approximately $2.3 billion, 21% of total credit and 14% of customer deposits.
The IMF mission, which is currently providing technical assistance to the Monetary Authority, praised the good performance of the Palestinian banking system.
The consumer price index continues to rise
PCBS data shows an increase in the consumer price index in Palestine of 3.51%, (3.46% in the West Bank, 3.06% in the Gaza Strip) in the first eight month of 2022 compared to the corresponding period of the previous year.
Comparing the prices of August 2022 with August 2021, the data indicates an increase in the consumer price index in Palestine of 3.16%, (3.57% in the West Bank and 1.04% in the Strip). Gaza.