Regulatory Alerts2012-03-22
Capital Adequacy Assessment
The Supervisor of Banks in Israel issues this directive to establish key principles for banking corporations' capital adequacy assessments and risk management. It mandates that banks maintain capital levels commensurate with their specific risk profiles, including credit, market, operational, and interest rate risks, beyond minimum regulatory requirements. The framework requires robust internal processes, board oversight, stress testing, and supervisory review to ensure banks operate with adequate buffers against uncertainties.
Share