Deposit Protection Fund

active

The FZ project worth EUR 10 million involves the co-financing of a deposit insurance system (EUR 9.05 million) and supporting consulting services (EUR 0.95 million). The project's goal is to create a functional deposit insurance system that is firmly anchored in banks and the public in order to increase the mobilization of local refinancing funds. This is intended to contribute to the development of a functioning and stable financial system as an important element in the further development of the economy in the Palestinian territories (overall goal). The target group of the measure is primarily small savers, whose trust in the banking sector is thereby strengthened and who are thus given the opportunity to invest their savings productively and safely. Poorer sections of the population in particular are protected against unacceptable risks by protecting their savings. The development measures financed from project funds are intended to serve to further build the capacity of the deposit insurance company (Palestine Deposit Insurance Corporation, PDIC) (e.g. development of a premium system, stress test model). These are intended to contribute to further professionalization and adaptation to international standards.