Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus Crisis

Bank of Israel Banking Supervision Department Policy and Regulation Division May 15, 2022 Circular no. C-06-2708 To: Banking corporations and credit card companies Re: Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus Crisis (Temporary Provision) (Proper Conduct of Banking Business Directive no. 250) Introduction

1. Due to the continued impacts of the COVID-19 crisis on banking corporation assets, and this includes support for the credit needs for the recovery of the economy and a high level of deposits at the Bank of Israel, the need arose to extend the validity of the easing for the leverage ratios.
2. After consultation with the Advisory Committee on Banking Business Affairs, and with the consent of the Governor, I have amended this Directive as follows. Main points of the revision
3. Section 16(1)(a)1. was updated: The validity of the easing was extended through December 31, 2023. A banking corporation that utilizes the easing at that time will be required to get back to the leverage ratio required before the temporary provision within 2 quarters. Commencement
4. These updates shall go into effect on the publication date of this Circular. Update of file
5. Update pages for the Proper Conduct of Banking Business Directive file are attached. Following are the provisions of the update: Remove page Insert page (18/01/2022) [19] 250-1-7 (15/05/2022) [20] 250-1-7 Respectfully, Yair Avidan Supervisor of Banks