Regulatory Alerts2020-03-31
Bank of Israel Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus
The Bank of Israel issued temporary provisions reducing minimum capital adequacy ratios for banking corporations to provide business flexibility and support the economy during the coronavirus crisis. The directive mandates that banks utilize the resulting capital surpluses to increase credit for households and businesses rather than for dividend distributions or stock buybacks. These easing measures remain in effect for 24 months, with banks required to maintain adequate capital levels and responsible risk management throughout the period.
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