Question

Within the worsening economic situation in the Palestinian territories during the current period, how can financial and banking legislation alleviate the current economic and financial crisis?
What are the most important matters that the Monetary Authority and the Capital Market Authority must take care of to ensure the safety and stability of the financial and banking system in Palestine?

Answer 1

1. Financial and banking legislation can elevate the current economic and financial crisis by following measures-

A. Central Bank can control the monetary policy to a large extent and provide for support in form of lower interest rate

B. Central banks should also try to focus to not letting the businesses fail in the economy

C. They should also try to stimulate the demand in to the economy in order to stabilize economy

D. government should be trying to cut down on the federal rates of income taxes and corporate taxes

E. There should be bail out program which should be rolled out to counter adverse impact.

monetary authority and capital authority must take care of the proper monetary flow and they should be ensuring high degree of transparency and they should also try to attract foreign investors to invest in the economy and they should be trying to also cut down on any kind of duplicate measure of exchange so central bank should be highly regulating and stimulating the economy.