Regulatory Alerts2024-02-08
Update of Proper Conduct of Banking Business Directive 203
The Banking Supervision Department of Israel amended Proper Conduct of Banking Business Directive 203 to increase capital resilience against rising credit risk in the construction and real estate sectors. The update introduces a 150 percent risk weight for loans exceeding 80 percent loan-to-value ratios used for purchasing land for development or construction. These changes apply to financial statements from June 30, 2022, onward, with an optional transition period allowing banks to phase in the impact on capital adequacy ratios until June 30, 2023.
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