Regulatory Alerts2024-06-19
Measurement and capital adequacy—operational risk
The Supervisor of Banks issued Circular No. C-06-2785 to update Proper Conduct of Banking Business Directive no. 206, aligning Israel's operational risk capital requirements with the Basel Committee's December 2017 standards. The revised directive introduces a standardized approach based on the Business Indicator and an Internal Loss Multiplier, while mandating that large banking corporations collect internal loss data for risk management purposes. These amendments are scheduled to take effect on January 1, 2026, with a transitional period allowing the Internal Loss Multiplier to remain at one until December 31, 2028.
Share