Banking and Financial Sector
The Palestinian banking and financial sector is composed of:
The Central Bank – the Palestinian
Monetary Authority – which
monitors the banking system.
The insurance sector.
Other capital market activities, which include:
The Palestine Securities Exchange
Capital Market Law
Private Banking
Palestinian Monetary Authority (PMA)
The PMA was established in 1994 to facilitate the emergence of
a legal and regulatory environment to govern domestic banking.
It is vested with supervisory powers in respect of banking, controlling
foreign exchange transactions and regulating the capital market.
The PMA is the Palestinian Authority’s
sole financial agent, the depository of foreign exchange reserves,
and the PA's official
economic and financial advisor.
In 1997 the PLC promulgated the Palestine Monetary
Authority Law no. (2). This law established the PMA as being
responsible
for the goals and competences of the PMA, specifies it’s
capital and designates the PA as being responsible for covering
such capital.
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The Insurance Sector
The insurance industry in Palestine is growing in tandem with economic
development. Presently, there is one life insurance company and
eight full-service insurance companies providing a wide range
of insurance coverage and packages for commercial establishments
and individuals. These services include:
• Credit and mortgage insurance
• Fidelity bonds
• Health insurance
• Liability insurance; employer, public, product, professional
• Life insurance
• Marine cargo insurance
• Money insurance
• Motor vehicle insurance
• Personal accident
• Property and business interruption insurance
Local insurance companies cooperate with international insurance
companies to reinsure large-risk projects and establishments, whereby
both parties would share claim costs according to a prearranged
agreement.
The cost of insurance differs from one company to another according
to the type of insurance and the packages presented by each company.
Vehicle insurance, though, has fixed premium amounts determined
by the union of insurance companies, and the companies can offer
different payment options.
Establishing relationships is important in
this sector. It is advisable for first-time insurance buyers
to rely on assistance
from personal contacts or to take the time to
shop around and request bids from several insurance companies.
Prices may vary widely from one company to another.
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