The new SIA-SSB technology infrastructure is set to enable interbank payments in Palestine, contributing to the modernization of the local banking system. The technology allows management of payments clearing and settlement and offers a platform for the development of the financial services sector to the benefit of the Palestinian business community.
The technology infrastructure features multi-currency functions and manages four different currencies legally recognized in Palestine today: EUR, USD, ILS (Israeli Shekel) and JD (Jordanian Dinar). It also includes the RTGS (Real-Time Gross Settlement) system with integrated retail payments clearing functions to enable processing the settlement of both gross interbank payments and retail payments.
The integration of these two capabilities is follows the recent guidelines released by the World Bank which promotes the development of a single platform for the clearing and settlement of interbank payments within national economies characterized by limited exchange volumes, a service dubbed ATS (Automated Transfer System).
Additionally, the system architecture includes all the capabilities for the processing of the domestic currency, although are not functional yet, awaiting the establishment of a sovereign independent State of Palestine to allow PMA to become a Central Bank.
Currently, there are 20 banks (10 of which are foreign) operating in the Palestinian territories via a network of over 210 branches. The infrastructure supports a daily average of 10,000 payments. The system has processed transactions with an overall counter value climbing to USD 14.4 billion, equivalent to 216% of Palestine’s GDP, in first four months of operations.
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