2020-03-01

Capital Adequacy and Leverage Ratio Requirements

The Bank of Israel has amended Proper Conduct of Banking Business Directives 201 and 218 to raise the minimum capital requirement and leverage ratio thresholds from 20 percent to 24 percent. Implemented immediately upon publication, this adjustment supports broader structural reforms designed to diminish the market dominance of the nation's two largest banking groups. All licensed banking corporations and credit card companies must apply the revised calculation parameters and compliance limits to their regulatory reporting.

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