Regulatory Alerts2018-11-13
Capital adequacy and measurement—the standardized approach—credit risk, limitations on indebtedness of a borrower and group of borrowers
The Bank of Israel amended Proper Conduct of Banking Business Directives 203 and 313 to reduce the credit conversion factor for homebuyer investment guarantees to 30 percent. This adjustment reflects the historically low realization risk of these guarantees under the Sales (Homes) Law. The directive also clarifies that Moody’s long-term ratings map to the agency’s IFS ratings, with changes taking effect upon publication.
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