JERUSALEM, December 22, 2008 (WAFA)- The World Bank commended, Sunday, the steps taken by the Palestinian National Authority (PNA) “in developing the financial sector, particularly in strengthening and stabilizing the banking system through establishing a credit bureau, modernizing the payments system, instituting strict anti-money laundering laws and regulating capital requirements,” a World Bank review stated.

The West Bank and Gaza Financial Sector Review published, Sunday, by the World Bank, also provided recommendations for important further developments.” David Craig, World Bank Country Director for the West Bank and Gaza said that “the current threat to Palestinian financial stability remains the continuing Gaza liquidity crisis. Resolution is dependent on allowing regular transfers of cash to the regulated banks in Gaza and we continue to urge the Government of Israel move swiftly on this issue.'

The report reviewed the range of financial providers and products, the state of regulation and supervision and the prospects for market development. It also analyzed policy and institutional factors affecting financial sector effectiveness and provides recommendations for their improvement.

The report recommended the establishment of a steering committee to coordinate technical cooperation and to maintain reform efforts for the entire financial sector. Key recommendations of the report included: introducing out-of-court debt settlement, establishing registries of movable assets to increase the array of acceptable collateral, continued modernization of the payment system, establishment of investment management funds, the development of a bond market, increasing the housing finance market, and pension reform.