Regulatory Alerts2021-06-15
Pledging assets of a banking corporation (Proper Conduct of Banking Business Directive no. 336)
The Banking Supervision Department of the Bank of Israel amended Directive no. 336 to replace quantitative limits on pledged assets with requirements for sound management. The revised directive mandates that banking corporations only pledge assets when legally or market-required, while establishing strict corporate governance, risk management, and internal audit controls. These amendments, which include new definitions for pledged assets, take effect on January 1, 2022.
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