Regulatory Alerts2020-05-05
Additional Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus (Temporary Provision)
The Bank of Israel issued Circular no. C-06-2619 to revise Proper Conduct of Banking Business Directive no. 250 in response to government easing of activity limitations. The directive mandates that banking corporations maintain at least 50 percent of their customer in-person branches open, providing all routine services generally by appointment. Banks must also publish on their websites the specific customer types and cases, such as for senior citizens or urgent situations, that are permitted walk-in access without prior appointments.
Bank of Israel Banking Supervision Department Policy and Regulation Division May 5, 2020 Circular no. C-06-2619 Attn: Banking corporations and credit card companies Re: Additional Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus (Temporary Provision) (Proper Conduct of Banking Business Directive no. 250) Introduction
- In view of the government’s decision on additional esasings in the limitations on activity, and in order to provide continuity in the provision of banking services to the public, while protecting the health of the public and of bank employees, following is a revision that we formulated in the temporary provision.
- After consultation with the Advisory Committee on Banking Business Affairs, and with the consent of the Governor, I have established the following Proper Conduct of Banking Business Directive as detailed below. Main revisions to the Directive Proper Conduct of Banking Business Directive no. 355 on “Business Continuity Management” (Section 12) In Section 13a, which was added to Proper Conduct of Banking Business Directive no. 355 via Section 12 of Proper Conduct of Banking Business Directive no. 250: (1) In Subsection a(1), “30 percent” shall be replaced by “50 percent”. (2) In place of Subsection a(3) shall be: “Customer in-person branches shall provide all the services provided prior to the Supervisor’s determination regarding a real concern of an adverse impact to the health of the public. In general, the services shall be provided subject to the setting of an appointment in advance, however, the banking corporation shall publish on its website the types of customers and cases in which service will be provided even without setting an appointment in advance. The services are also to be provided to the banking corporation’s customers from other branches.”
Explanatory remarks In view of the government’s decision on additional easings in the limitations on activity, activity by branches that provide service to customers in person shall be expanded, such that the minimum share of open customer in-person branches shall be 50 percent. In those branches, all services provided in routine times shall be provided. In general, the services shall be provided subject to the setting of an appointment in advance, out of consideration for the health of the public. However, the banking corporations are required to provide a response to types of customers, such as senior citizens, and types of cases, such as urgent situations, for which service will be provided even without setting an appointment in advance. The banking corporations are to publish on their websites the types of customers and types of cases noted above. Update of file 3. Update pages for the Proper Conduct of Banking Business Directive file are attached. Following are the provisions of the update: Remove page Insert page (April 27, 2020) [5] 250-1-7 (May 5, 2020) [6] 250-1-8 Respectfully, Dr. Hedva Ber Supervisor of Banks