Regulatory Alerts2021-09-30
Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus Crisis (Temporary Provision)
The Bank of Israel extended the temporary provision for banking business directives until December 31, 2021, while canceling certain easings and modifying others to reflect the winding down of the economic crisis. The regulator removed the higher loan-to-value allowance for non-housing loans and reinstated stricter capital requirements for housing loans effective October 1, 2021, while maintaining the easing for other purposes. Additionally, the Supervisor of Banks encouraged conservative dividend distributions, stating that payouts exceeding 30 percent of profits for 2020 and 2021 do not constitute cautious capital planning.
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