Palestine Monetary Authority

The Palestine Monetary Authority (PMA) is Palestine's independent public monetary and banking authority and the institution that performs many central-bank functions for the Palestinian financial system. It was established in 1994 after the signing of the Protocol on Economic Relations, commonly known as the Paris Protocol, between the Palestinians and Israel. Based in Ramallah, the authority operates within a monetary environment in which Palestine does not issue its own national currency. Its responsibilities therefore center on regulation, supervision, financial stability, payment infrastructure, and monetary-policy implementation rather than conventional domestic banknote issuance. The PMA's statutory framework includes PMA Law Number 2 of 1997, enacted by the Palestine Legislative Council, and Banking Law Number 9 of 2010. Within that framework, it formulates and implements monetary and banking policies intended to preserve monetary and financial stability and support balanced economic development. Its supervisory remit covers Palestinian and foreign banks operating in the West Bank and Gaza Strip, as well as specialized lending institutions and money changers. The authority is described as supervising 13 Palestinian and foreign banks operating across the two territories. A central part of the PMA's work is prudential oversight. It regulates and supervises financial institutions, seeks to maintain confidence in the banking sector, and supports the orderly functioning of financial markets. It also oversees the implementation and operation of modern payment systems, an important function in an economy that relies on currencies issued outside the authority's control. The PMA's objectives include developing and executing monetary policy aimed at price stability, while also promoting sustainable economic growth and financial-sector resilience. Financial inclusion is another policy priority. The authority participates in international financial-inclusion initiatives and is a member of the Alliance for Financial Inclusion. This places the PMA within a wider network of monetary and financial regulators focused on expanding access to formal financial services and improving the efficiency of payments. The institution's visual identity references Palestine's monetary history. Its logo incorporates the name of the authority in English and Arabic and is based on imagery from the historic Palestinian pound era under the British Mandate, including a five-mils coin. That symbolism acknowledges an earlier period in which a Palestinian currency circulated, while the contemporary PMA remains a regulator and central-bank-like institution rather than a currency-issuing central bank. The authority has been led by a succession of governors since its creation. The documented governors include Fouad Bseiso, Amin Haddad, George al-Abed, Jihad al-Wazir, Azzam Shawwa, Feras Milhem, and Yahya Shannar, who began serving in January 2025. The PMA remains an active public institution responsible for the stability and development of Palestine's banking and payments systems.

The Palestine Monetary Authority emerged from the institutional arrangements created by the 1994 Protocol on Economic Relations, or Paris Protocol. Its establishment provided Palestine with a dedicated public institution for monetary and banking administration at a time when the territory did not possess a conventional sovereign central bank or a national currency issued by the authority itself. From its base in Ramallah, the PMA developed into the principal regulator of Palestine's banking and financial system. The authority's legal foundation was subsequently defined by PMA Law Number 2 of 1997, an act of the Palestine Legislative Council. This framework established the PMA as an independent public institution responsible for formulating and implementing monetary and banking policies. Its broad objectives include protecting the banking sector, preserving monetary and financial stability, and supporting balanced growth of the national economy. The PMA's role was further shaped by Banking Law Number 9 of 2010. Under the institution's regulatory mandate, it supervises Palestinian and foreign banks operating in the West Bank and Gaza Strip. It also regulates or oversees specialized lending institutions and money changers. These responsibilities give the PMA a prudential and market-conduct role across significant parts of the financial system, even though it does not issue a Palestinian currency. Payment infrastructure became an especially important area of responsibility. The authority oversees the implementation and operation of modern payment systems, helping provide the institutional basis for efficient financial transfers in a monetary setting that uses currencies issued outside the PMA's direct authority. Its monetary-policy objective is described principally in terms of price stability, alongside the broader goals of financial stability and sustainable economic development. The PMA has also adopted financial inclusion as a policy concern and is a member of the Alliance for Financial Inclusion. This connects the authority's domestic regulatory work with international efforts to widen access to formal financial services and improve the usability of payment systems. The institution's branding links its contemporary regulatory identity with Palestine's monetary past. The PMA logo uses English and Arabic lettering and incorporates imagery associated with the Palestinian pound, including a historic five-mils coin minted and circulated during the British Mandate. The design reflects the historical existence of Palestinian currency while distinguishing that legacy from the PMA's present role as a central-bank-like authority that does not issue a current Palestinian national currency. Since its creation, the authority has been led by governors including Fouad Bseiso, Amin Haddad, George al-Abed, Jihad al-Wazir, Azzam Shawwa, Feras Milhem, and Yahya Shannar. Shannar is identified as governor from January 2025 onward. Across these leadership periods, the PMA's continuing institutional mission has been to supervise banks and other financial institutions, support stable monetary conditions, operate and modernize payment systems, and contribute to the development of Palestine's financial sector.

• 2025

  Yahya Shannar becomes governor

  [1]Palestine Monetary Authorityen.wikipedia.org

  Yahya Shannar began serving as governor in January 2025.

• 2010

  Banking Law Number 9 of 2010

  [1]Palestine Monetary Authorityen.wikipedia.org

  The banking law provided a key legal basis for the authority's supervision and regulation of Palestine's banking sector.

• 1997

  PMA Law establishes the statutory framework

  [1]Palestine Monetary Authorityen.wikipedia.org

  PMA Law Number 2 of 1997, enacted by the Palestine Legislative Council, defined the authority's institutional role and responsibilities.

• 1994

  Establishment following the Paris Protocol

  [1]Palestine Monetary Authorityen.wikipedia.org

  The Palestine Monetary Authority was established after the signing of the Protocol on Economic Relations between the Palestinians and Israel, creating a dedicated Palestinian institution for monetary and banking administration.

An independent public monetary authority performing central-bank and banking-regulatory functions for Palestine, with emphasis on financial stability, bank supervision, payment systems, price stability, and inclusive access to financial services.

• Central-bank function · 1994

  Monetary policy

  The PMA develops and implements monetary policy within Palestine's distinctive monetary environment. Its stated monetary objective is price stability, coordinated with the broader goals of preserving financial stability and supporting balanced, sustainable economic growth. Because the PMA does not issue a Palestinian national currency, this function differs from the currency-management model of a fully sovereign currency-issuing central bank.

• Financial regulation · 1994

  Banking supervision

  The authority supervises Palestinian and foreign banks operating in the West Bank and Gaza Strip. Its remit is intended to safeguard the banking sector, support confidence in financial institutions, and promote compliance with the applicable Palestinian legal and regulatory framework. The PMA also oversees specialized lending institutions and money changers.

• Financial infrastructure · 1994

  Payment-system oversight

  The PMA oversees the implementation and operation of modern payment systems in Palestine. This function supports more efficient financial transfers and provides institutional oversight for payment infrastructure in an economy where the authority does not issue its own currency.

• Financial development

  Financial inclusion policy

  Financial inclusion is among the PMA's policy priorities. Through its regulatory and institutional work, the authority seeks to support broader access to formal financial services and participates in international financial-inclusion cooperation as a member of the Alliance for Financial Inclusion.

• Financial inclusion policy

  Palestine

  The PMA promotes financial inclusion as part of its institutional objectives and participates in the Alliance for Financial Inclusion. The initiative is policy-oriented rather than a consumer advertising campaign, focusing on access to financial services and the development of an efficient financial system.

  Source

• 2010

  Expansion of the statutory banking frameworkStrategy

  Background

  The authority's banking-supervision responsibilities required a defined legal basis for regulating banks and other financial institutions operating in the West Bank and Gaza Strip.

  Action taken

  Banking Law Number 9 of 2010 was adopted as a key part of the framework governing the Palestinian banking sector and the PMA's supervisory role.

  Aftermath

  The law reinforced the PMA's role in supervising banks, specialized lending institutions, and money changers.

  Source

• 1994

  Creation of a central-bank-like monetary authorityStrategy

  Background

  The Paris Protocol created the context for a Palestinian institution responsible for monetary and banking administration, despite the absence of a Palestinian currency issued by that institution.

  Action taken

  The Palestine Monetary Authority was established as an independent public institution with responsibility for monetary policy, banking oversight, and financial stability.

  Aftermath

  The PMA became the principal monetary and banking regulator for Palestine and later operated under dedicated Palestinian monetary and banking legislation.

  Source

1. 1Palestine Monetary Authorityen.wikipedia.org