Regulatory Alerts2020-11-15
Additional Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus (Temporary Provision)
The Bank of Israel issued Circular no. C-06-2633 to provide banking corporations with business flexibility by revising the temporary provision for dealing with the coronavirus. The directive reduces the minimum consolidated leverage ratio requirement to 4.5 percent, or 5.5 percent for large institutions, to prevent credit barriers during the crisis. These eased standards remain in effect for 24 months after the temporary provision ends, contingent on maintaining a leverage ratio no lower than the pre-crisis minimum or the level at the end of the directive period.
Share