The Palestine Monetary Authority has recently established the Palestine Deposit Insurance Corporation (PDIC) in order to safeguard small bank depositors, promote a stable and sound banking sector and contribute to sustainable economic development in Palestine. The principal aim of the PDIC is to provide insurance for all deposits and especially for small deposits (up to US$10,000 and covering around 92 percent of depositors) at PMA-licensed banks operating in Palestine in case of bankruptcy or liquidation of the bank.
The objective is to support the further development of the deposit insurance system towards a well-functioning, efficient, effective and sustainable structure.
- Implement an adequate risk management approach including a stress test system in order to establish a risk based premium for deposit insurance scheme;
- Implement a pay-out system;
- Support PDIC to acquire / develop an adequate bank risk management and assessment system as well as a pay-out system;
- Support PDIC to strengthen its staff´s capacities in risk management, stress test, risk based premium and pay-out system;
- Improve the related legislation and regulations.