Regulatory Alerts2012-03-22
Management of Credit Facilities in Current Accounts
The Supervisor of Banks issued directives requiring banking corporations to approve current account credit facilities based on documented analysis of customer credit needs and to strictly limit debit balances to the agreed ceiling. Banks are permitted to unilaterally provide temporary credit for specific overruns or discovered errors, provided no fees are charged and the interest rate does not exceed the most recent agreed rate. The regulation allows for minor exceptions where overruns do not exceed NIS 2,000 for private individuals or NIS 5,000 for commercial credit, provided they are not prolonged.
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