Regulatory Alerts2020-03-18
Adjustments to Proper Conduct of Banking Business Directives for Dealing with the Coronavirus (Temporary Provision)
The Bank of Israel's Banking Supervision Department issued temporary adjustments to Proper Conduct of Banking Business Directives to provide flexibility and assist households and businesses during the coronavirus pandemic. These adjustments permit banking corporations to hold board meetings remotely, modify customer complaint handling, increase credit limits for the real estate industry from 20% to 22%, and allow honoring customer debits that exceed credit facilities under specific conditions. Further provisions enable higher loan-to-value for non-purchase housing loans, facilitate e-banking adoption and payment card issuance, allow telephone cancellation of debits, and are effective from March 18, 2020, until September 30, 2020, with a potential extension.