Regulatory Alerts2022-10-30
The Liquidity Coverage Ratio and Net Stable Funding Ratio
The Banking Supervision Department of Israel amended Proper Conduct of Banking Business Directives 221 and 222 to update the policy on recognizing operational deposits within the Liquidity Coverage Ratio. The revisions impose new approval processes, including Chief Risk Officer and senior management certification, while establishing ceilings on single-entity and aggregate operational deposits to reduce liquidity concentration. These regulatory changes, which also include a technical correction to Directive 222, take effect on January 1, 2023.
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