The financial structure in Palestine is composed of a monetary authority, depository financial institutions, non-depository financial institutions, money changers, and a stock exchange. The Palestinian economy lacks a currency of its own which is preventing the Palestinian Monetary Authority (PMA) from becoming a conventional central bank. The Jordanian dinar, the Israeli shekel, and the American dollar are all used in daily transactions. The PMA lacks the tools to conduct an active monetary policy because it can not influence the interest rates or the exchange rates or the supply of these currencies. Under the prevailing political conditions, this may have been a blessing in disguise.

The non-depository financial institutions include the insurance industry, the brokerage industry, and the mortgage industry. The insurance industry is the most established among these industries and it is composed of five local firms and two foreign firms (one Jordanian and one American). The brokerage industry is composed of five firms which carry-out all of the trade on the Palestine Securities Exchange (PSE). The mortgage industry is still in its infancy stage and it is composed of one firm. Its performance has been satisfactory and more firms are expected to join the industry in the near future.

Palestine Monetary Authority Law
Banking Structure
Palestine Securities Exchange