The Bank of Palestine has reported profits of $38.4m in 2012, a 12.9 per cent increase on 2011.

The largest Palestinian bank said that assets rose by 21.2 per cent to $2bn and loans rose by almost 36 per cent to $976m. Deposits rose by nearly 20 per cent to $1.55bn.

Palestinian banks have benefited from conservative regulatory policies of the Palestinian Monetary Authority, which has conducted regular stress tests on local lenders to ensure they can withstand significant deteriorations in the operating environment.