Regulatory Alerts2021-12-26
Update of Proper Conduct of Banking Business Directives no. 203 and 208A
The Banking Supervision Department of the Bank of Israel amended Directives 203 and 208A to reduce risk weights for exposures to insurance companies, provident funds, and mutual funds by treating their debts as equivalent to those of banking corporations. These changes reflect the low credit risk associated with these supervised entities and align with Basel Committee guidelines, while extending similar treatment to foreign entities in OECD countries rated A- or higher. The amendments to Directive 203 took effect upon publication, whereas the updates to Directive 208A commenced on January 1, 2023.
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