Regulatory Alerts2019-10-29
Credit Risk Management
The Bank of Israel Banking Supervision Department amended Directive 311 on Credit Risk Management to introduce regulatory easings for retail and small business financing while tightening internal credit approval controls. The update extends the validity period for borrower financial statements to nine months, permits credit renewals without updated statements for up to six months under specific conditions, and expands the financial statement exemption for domestic factoring transactions up to NIS 10 million when backed by insurance. Conversely, the circular restricts individual signature authority by mandating expert credit analysis and Chief Risk Officer approval for significant exposures, with the revised provisions taking effect upon publication except for signature authority rules, which must be implemented by April 2020.