Regulatory Alerts2018-07-02
Added
Capital Adequacy and Measurement—the Standardized Approach—Credit Risk
The Bank of Israel amends Proper Conduct of Banking Business Directive no. 203 to address credit card companies following the Enhancing Competition and Reducing Concentration in the Banking Sector in Israel (Legislative Amendment) Law, 5777-2017. The updates define credit card companies as claims on banks, assign them a risk weight one category lower than the State of Israel’s rating, and apply a 20 percent risk weighting to debt maturing in three months or less. Claims on credit card companies rated below B- are subject to a risk weight of 150 percent or higher. These changes apply to banking corporations and credit card companies and take effect upon publication.
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