Background

The formal financial sector in West Bank and Gaza has been developing for 15 years. Despite various difficulties, the Palestinians have established a financial sector composed mostly of the expected sub-sectors: banks, the securities market, insurance companies, payments system, housing finance companies, microfinance institutions, financial leasing companies and a credit bureau. Yet, the financial sector infrastructure still requires significant strengthening.

To strengthen their financial system, the Palestinian Monetary Authority requested technical assistance from FIRST to help plan for the establishment of a deposits insurance scheme that would help build confidence in the financial system and provide for a stable financial environment.

Project

The GOAL of this project is to contribute to the achievement of financial stability and expanded economic activity.

The PURPOSE is to help the Palestine Monetary Authority and the Central Bank and Supervisory Authority to conduct a feasibility study to establish a deposits insurance scheme.

OUTPUTS:  The outputs of the project are: (i) a report describing the characteristics of one or several deposits insurance schemes that would suit the Palestinian context; and (ii) an action plan that would lead to the establishment of a deposits insurance scheme.

Project LIFE TIME is 6 months from April 2009 till September 2009.

Project BUDGET is $56,000.

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