Regulatory Alerts2021-07-26
Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus Crisis (Temporary Provision)
The Bank of Israel amended Proper Conduct of Banking Business Directive no. 250 to permit limited dividend distributions by banking corporations while maintaining a cautious capital planning approach. The regulator capped such distributions at 30 percent of 2020 profits and urged banks to utilize capital surpluses to support economic credit rather than shareholder payouts. Additionally, the directive was revised to allow banks to estimate self-employed income for housing loans using 2018 and 2019 averages to mitigate the impact of the crisis on borrower eligibility.
Share