PDIC prepared a medium-term financial program that is based on two sets of measurement indicators. The first set includes guiding indicators for variables that do not fall within the scope of the Corporation’s control, but effectively and fundamentally influence the fulfillment of its duties, like the growth rate of deposits subject to the provisions of the Law. The second set includes institutional performance indicators that reflect PDIC’s real performance and represent variables that fall within the scope of the Corporations’ control, and influence the fulfillment of its duties like the return on investments.
- PDIC conducts a comprehensive yearly revision of these indicators, and updates the assumptions in light of recent developments in the economy in general, and PDIC operations in specific. Most importantly, these assumptions relate to deposit’s yearly growth, and the membership fees collected from member banks annually.
- Medium-term indicators have also been compiled relying on data on deposits and depositors for past years, and establishing average basis for the growth rates for these variables.
- PDIC currently charges membership fees based on a 0.3 % flat rate applied equally to all member banks regardless of risk assessment for individual banks.
- In line with PDIC Law which allows charging fees from member banks based on their risk ranking, and to comply with the Core Principles for Effective Deposit Insurance Systems; PDIC, in cooperation with the PMA and the Association of Banks in Palestine (ABP), will commence work to establish the main features of a new risk-based fee-collection system that is in line with PMA instructions and internationally approved-standards and/or standards set by the Basel Committee on Banking Supervision (BCBS).
- Preliminary results of the Strategic Plan showed that the targeted reserve level of 3% of total deposits subject to the provisions of the Law could be attained by 2022.