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Palestine strengthens its banking system by establishing Palestine Deposit Insurance Corporation

2013-11-24

Palestine Monetary Authority PMA established Palestine Deposit Insurance Corporation PDIC, which shall cover about 93 percent of depositors in the Palestinian banking system. The PDIC is an institution which aims to enhance the confidence of the banking system’s depositors, in addition to maintaining its stability. Furthermore, its existence in the Palestinian market will encourage the movement of Savings, thereby promoting economic growth.
PDIC targets small depositors by covering $10,000 of each’s account ( by 100%), even if having multiple accounts in more than one bank. For accounts of more than $10,000 the coverage will be based on the companies law; according to the law during a month, but in practice, will take place during a week.
The PMA has requested credit facilities ceiling from the Central Bank of Algeria, the European Investment Bank,  KfW Development Bank of about $200 million from each to support PDIC. It has got preliminary approval and waiting for the final approval. Regarding the Palestinian Government, it must fund PDIC with $20 million, but because of the financial crisis of the Palestinian National Authority, PDIC has begun the procedures to receive the total amount in payments.