Supervisor of Banks

Policy Department

Jerusalem, 780 P.O.B. Tel: 02-6552475 Fax: 02-6524590

January 27, 2013 Shvat 7, 5773

Circular No. 2366-06

To: Banking Institutions and Credit Card Companies

Subject: Data for Calculating Effective Cost in the Unindexed Shekel Segment (Monthly)

(Reporting Instruction No. 822)

Introduction

1. Due to the need to amend the "Gross Income and Expense Ratios" addendum in the Financial Statements of the Public, amendments have been made to Reporting Instruction No. 822 - Data for Calculating Effective Cost in the Unindexed Shekel Segment (Monthly).

2. The old reporting format is hereby cancelled and replaced by Table 01 - Net Gross Balances, Income and Expenses, and Liabilities (in non-indexed Israeli currency), pursuant to Reporting Instruction No. 822.

3. The structure of Table 01 has been adjusted to align with the "Gross Income and Expense Ratios" addendum in Reporting Instructions 8.1-8.2-640.

4. A new column titled "Average Balance Net" is added, based on the "Average Balance Gross" minus provisions for credit losses on loans. This column is provided solely to facilitate the continued calculation of the effective cost of the balance, calculated as previously done.

5. The public loans section is divided into two parts, similar to the old reporting format: a. Once per month: "Demand Loans" including "Time Loans" and "On Call" loans; and "Loans at Fixed Interest Rates". b. Twice per month: "Consumer Loans" and "Business Loans".

6. The public deposits section is also divided into two parts: a. Once per month: "Deposits" including "Time Deposits" and "Balance Rights"; and "Fixed Rate Deposits" (similar to the old reporting format). b. Starting from 1.1.2014, twice per month: "Deposits of Individuals", "Institutional Deposits", and "Other Corporate Deposits".

7. These amendments shall take effect on April 1, 2013, except for Section 6 above, which shall take effect on January 1, 2014.

8. For questions and clarifications regarding the tables in this instruction, please refer to Reporting Instruction No. 803.

9. Update of Files: The following pages constitute the updated version of the Supervisor of Banks' Reporting Instructions file:

Page to Insert	Page to Remove
[8] 822-1-2 Various Versions	822-1-6
[4] 897-51 (8/12)	897-51 (8/12) [4]
[5] 897-52 (1/13)	897-52 (1/13) [4]

This page was reprinted but not updated, due to the transition to double-sided printing.

With respect,

Auriv Super Deputy Supervisor of Banks

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Supervisor of Banks Reporting Instructions Page 822-1 Effective Cost

1. This instruction applies to banks other than foreign banks.
2. The reporting relates to activities at branches in Israel.
3. The report must be submitted within 20 days from the end of the month being reported.

Report Structure

4. The report consists of Table 01 - Net Gross Balances, Income and Expenses, and Liabilities (in non-indexed Israeli currency).

Method of Submission

5. Reporting must be conducted via computer communication technology over the internet. The reporting format is attached to this circular.

Definitions

6. Any term used in this instruction shall have the meaning assigned to it in the Reporting Instructions, as defined in Section 2(g).

7. Despite Section 6 above, no income from early repayment fees or breakage penalties shall be presented in this report.

8. "Consumer Loans": Loans to individuals, as defined in Reporting Instruction No. 831.

9. "Business Loans": Total loans excluding consumer loans, including "Group Acquisition Loans" as defined in Reporting Instruction No. 876.

10. "Institutional Deposits": Deposits from institutional bodies, as defined in the Financial Statements of the Public.

11. "Average Balance Net": "Average Balance Gross" minus provisions for credit losses on loans, calculated individually.

12. If corrections are made after the submission of the report (e.g., changes in provisions for supplied debts), or even if several months have passed since the report was sent, if you receive a feedback report, you must resubmit the report for that same month.

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Supervisor of Banks Reporting Instructions Page 822-2 Effective Cost

Table 01 Net Gross Balances, Income and Expenses, and Liabilities (in non-indexed Israeli currency)

Average Balance Gross	Average Balance Net	Income / Expenses
1	2	3

Loans

Code	Description	Amount (Thousands of NIS)
01	Total Public Loans
02	Time Loans
03	On Call Loans:
04	Loans at Fixed Interest Rates:
05	Consumer Loans
06	Business Loans
07	Loans to Government
08	Deposits in Banks
09	Deposits in Central Banks
10	Acquired or Borrowed under Repurchase Agreements
11	Held for Sale and Availability for Redemption
12	Held for Trading
13	Other Assets
14	Total Interest-Bearing Assets
15	Interest-Bearing Assets Other Than Loans: Credit Cards
16	Interest-Bearing Assets Other Than Loans: Other Assets
17	Total Assets

Liabilities

Code	Description	Amount (Thousands of NIS)
18	Total Balance Rights
19	Deposits
20	Time Deposits
21	Deposits at Fixed Interest Rates:
22	Deposits of Individuals
23	Institutional Deposits
24	Other Corporate Deposits
25	Deposits of Government
26	Deposits in Central Banks
27	Deposits in Banks
28	Sold or Lent under Repurchase Agreements
29	Debt Securities
30	Other Liabilities
31	Total Interest-Bearing Liabilities
32	Interest-Bearing Liabilities Other Than Public Deposits
33	Receivables from Interest-Bearing Assets Other Than Loans: Credit Cards
34	Interest-Bearing Liabilities Other Than Loans: Other Liabilities
35	Total Liabilities

Note: Average Balance Net is calculated individually based on Average Balance Gross minus provisions for credit losses on loans.

Monthly Report on Data for Calculating Effective Cost in the Unindexed Shekel Segment

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Supervisor of Banks Reporting Instructions Page 897-52 Appendix G - Updates Key

Page to Insert	Page to Remove	Subject	Instruction No.	Date
[11] 877-6-7 (9/11)	[11] 877-6-7 (9/11)	Reporting Instructions	2345	30.08.2012
[12] 877-8 (8/12)	[11] 877-8 (9/11)	Continued (Supervision)
Various Versions 887-1-5
[4] 897-51 (8/12)	[3] 897-51 (5/12)
[1] 897-52 (8/12)
[9] 876-1 (8/12)	[9] 876-1 (8/12)	Housing Loans	2350	27.11.2012
[9] 876-2 (8/12)*	[9] 876-2 (8/12)*
[9] 876-3 (8/12)*	[9] 876-3 (8/12)*
[10] 876-4-6 (11/12)	[9] 876-4-6 (8/12)
[9] 876-13 (8/12)*	[9] 876-13 (8/12)*
[1] 876-14 (11/12)
[4] 897-51 (8/12)*	[4] 897-51 (8/12)
[1] 897-52 (8/12)	[2] 897-52 (11/12)
[73] 803-1 (1/13)	[73] 803-1 (8/12)	Exposure to Countries	2360	02.01.2013
[77] 803-2 (1/13)	[76] 803-2 (8/12)	Foreign
[4] 803-3 (1/13)	[4] 803-3 (8/12)
[2] 834-1 (12/10)	[2] 834-1 (12/10)
[3] 834-2 (9/11)	[3] 834-2 (9/11)
[4] 897-51 (8/12)*	[4] 897-51 (8/12)
[3] 897-52 (11/12)	[2] 897-52 (11/12)
Various Versions 827-1-8
[13] 827-1-13 (1/13)		Risk Report	2364	13.01.2013
[22] 896-1 (9/11)	[22] 896-1 (9/11)	Liquidity
[16] 896-2 (12/09)
[4] 897-51 (8/12)*	[4] 897-51 (8/12)
[3] 897-52 (8/12)	[3] 897-52 (8/12)
[8] 822-1-2 (1/13)	[6] 822-1-8	Effective Cost	2366	27.01.2013
[4] 897-51 (8/12)*	[4] 897-51 (8/12)
[5] 897-52 (1/13)	[4] 897-52 (1/13)

This page was reprinted but not updated, due to the transition to double-sided printing.