| Project description |
Bank of Palestine (BoP or the Bank) is the first and largest national bank with a well diversified branch network with 31 branches in West Bank and Gaza. Established in 1960, originally in Gaza city, the Bank has successfully expanded its presence and operations in West Bank, and in 2007 established its head office in a prestigious new building in Ramallah. BoP now has 19 branches in West Bank and 12 in Gaza. BoP has 14% market share of deposits and credit facilities among 22 foreign and local banks active in West Bank and Gaza. Operating as a universal bank, BoP is largely engaged in retail and commercial lending operations, with the largest card processing operations in West Bank and Gaza. BoP is the sole member and franchise owner for Visa and Master Card International in Palestine with over 1,500 point of sale machines throughout Palestine. BoP has a large and well diversified branch network with 30 branches and outlets across West Bank and Gaza.
The project is aimed to support the Bank’s growth and regional expansion plans. |
|
| Project sponsor and major shareholders of project company |
| The Bank was listed on the Palestine Stock Exchange in 2005. At end-2007, it had a diversified shareholding structure, with 32% of BoP’s shares held by various members of Shawa family, 54% by private local individual and institutional investors, and 14% by foreign private individual and institutional investors. |
| Total project cost and amount and nature of IFC's investment |
| The project is aimed to establish long-term partnership with the Bank. The IFC is also working on a number of projects with BoP including: an Affordable mortgage program, Trade Finance Program, and the Student Loan Program The total cost of the project and IFC’s contribution is to be determined. |
| Location of project and description of site |
| BoP is headquartered in Ramallah with a General Management office also in Gaza. The bank has the largest branch network with 31 branches across several cities in West Bank and Gaza. |
|
| Anticipated development impact of the project |
The project will have strong development impacts. It will:
- support a leading local financial institution in its growth and regional (i.e. Jordan) and international expansion as well as enhance the depth and expansion of the financial system of West Bank and Gaza;
- enhance the Bank’s profile in its focus on banking products and services, including to SMEs and low income people, especially in frontier and conflict-affected cities of Gaza, which is crucial for the sustainable development of the private sector in West Bank and Gaza;
- share IFC’s expertise and knowledge of best practices with the Bank, facilitate capacity and institution building and helping the Bank with effective risk management and governance structures;
- strengthen the Bank’s capacity in environmental and social management;
- support existing and future projects and programs with the bank (eg Housing Mortgage and Student Loan, Private Equity and Funds)
- create a demonstration effect for other institutions to become active in West Bank and Gaza. |
 |
|
| IFC's expected development contribution |
The project will have strong development contribution. It will:
- provide long term partnership to a bank operating in a frontier and conflict-affected banking area;
- set a role model for other private investors to increase their exposures in financial markets of West Bank and Gaza. |
| Environmental and social issues - Category FI |
The project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.
IFC will analyze the Bank's portfolio, and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of:
- The IFC FI Exclusion List; and/or
- The applicable National Social and Environmental Laws and regulations; and/or
- The IFC Performance Standards.
IFC will also review, if required, the capacity of the Bank to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.
Based on the review, the Bank will be required to:
- Develop an, or upgrade, if necessary, any existing Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.
|
|
| For inquiries about the project, contact: |
Mr. Hashim H. Shawa, General Manager & Vice Chairman
Bank of Palestine
P.O.Box 471, Ramallah,
West Bank & Gaza
Telephone: +970-2-2970990
Fax: +970-2-2970980
Website: www.bankofpalestine.com |
|
| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
|
|
|
|