Bank of Israel
Supervision of Banks
Policy Department of Reporting

Fax: 02-6524590 Tel: 02-6552475 Jerusalem, P.O.B. 91007 Jerusalem, 23 Shevat 5774 January 21, 2014 Circular No. 2411-06

To:
Banking Institutions and Credit Card Companies

Subject: Reporting Directives

Introduction

1. Further to Circular No. 2399-06 dated September 30, 2013, which amended the Reporting Directives pursuant to Directive on Reporting Supervision (827) on Liquidity Risk, the following amendments are added to the directives:

2. Clause 14(g) of Directive on Liquidity Risk – 827 (monthly and quarterly) shall include a clarification regarding a banking institution's subsidiary company, whether it will receive the international rating of securities it issues.

3. Clauses 21 (Derivatives), 22-24 (Old numbering) shall be deleted and replaced by Clauses 21-23 (New numbering).

Explanation of Changes
4. Clause 23 (Old numbering) of the Guidelines for Forms 01-03 shall include a clarification regarding the distribution of balances according to the remaining period.

5. Clause 24 (New numbering) shall be added to the Guidelines for Form 06 (replacing Clause 24 (Old numbering)), stating that deposits of an assisting entity whose primary purpose is the issuance of debt securities shall be reported in this form.

6. Clause 27 (Definition of "Depositor") shall include an additional clarification regarding Clause 17, defining "Depositor" as:
   "Deposits of institutional bodies: Row 26 shall be added after Row 25 in Form 01-03. (Old numbering 26-39 and rows) shall become (New numbering 27-36) in Forms 01 and 03. (New numbering 27-40 rows) shall become in Form 02."

7. Effective Date

8. The amendments to the Reporting Directive shall take effect as of March 31, 2014.

9. Inquiries and Questions
   Inquiries and questions regarding the tables in the Reporting Directive (803) should be directed to the Reporting Supervision Department (Banks).

10. Update of Files
    The following pages of the "Reporting to the Banking Supervision Department" file have been updated according to the directives below:

Insert Page | Remove Page
*(1/13) [3] 827-1 | (1/13) [3] 827-1
(1/14) [4] 827-2-4 | (1/13) [3] 827-2-4
(1/14) [4] 827-5-7 | (1/13) [3] 827-5-7
*(1/13) [3] 827-8 | (1/13) [3] 827-8
*(7/13) [4] 897-53 | (7/13) [4] 897-53
(1/14) [6] 897-54 | (1/14) [5] 897-54

• This page has not been updated but was reprinted following the transition to double-sided printing.

Technical correction

With respect,

Omer Soffer
Deputy Superintendent of Banks

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(1/14) [4] Reporting to the Banking Supervision Department Directive on Liquidity Risk Report 827-2

Definitions
7. (a) Liquidity ratio, net projected outflow, projected receipts, projected payments, liquidity cushion (minimum), specific stress scenario, systemic stress scenario, combined stress scenario, as defined in Banking Standard 342 "Liquidity Risk Management".
(b) Institutional body, derivatives, as defined in the Reporting Directives.

General Guidelines
8. The forms shall be submitted using two separate reporting systems:
8.1. For the monthly reporting system, except for the following rows and columns:
8.1.1. Rows 34-35 and 39-40 (USD and EUR rows) in Form 02.
8.1.2. Columns 03-04 (Liquidity indicators in USD and EUR) in Form 04.
8.2. For the quarterly reporting system, Forms 01-09.

9. The reporting is detailed. The bank shall report in a separate system for both monthly and quarterly reporting.

10. The monthly report may be submitted based on reasonable estimates based on the best available information. The banking institution shall submit the report to the authority by the deadline.

Guidelines for Forms 01-03 and 07-08
11. These forms shall report "Projected future cash flows" as defined in Clause 51.

12. Assets and liabilities shall be reported according to maturity periods: from demand to over one month, and from over one year to the balance sheet balance.

13. Assets with no maturity period, including assets whose maturity has passed, shall be reported as cash flows "Over one year" under "Projected future cash flows".

14. Securities held by the banking institution shall be presented according to maturity periods in four groups:
    (a) Government bonds of the State of Israel, including Treasury bills issued by the Bank of Israel; (b) Government bonds of foreign countries, including bonds of central banks of foreign countries; (c) Other government bonds rated Investment Grade or above (AA-) by an international rating agency, or bonds issued by central banking institutions or their subsidiaries in these countries rated BBB- or above by an international rating agency, or bonds issued by local or foreign institutions (whether or not included in clauses (b) above) rated A- or above by an international rating agency; (d) Other government bonds not rated Investment Grade, including bonds of central banks of foreign countries, and bonds of central banking institutions or their subsidiaries in these countries (whether or not included in clauses above) and local or foreign institutions.

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(1/14) [4] Reporting to the Banking Supervision Department Directive on Liquidity Risk Report 827-3

15. It is clarified that "Housing loans" in Clause 20 of Banking Standard 342 "Liquidity Risk Management" shall be classified as "Other Credit" as defined in Directive 876 (and not as "Housing loans").

16. "Large Deposits" are deposits exceeding 50 million NIS or 0.5% of public deposits, whichever is lower.

17. It is clarified regarding a depositor with multiple accounts that the total balance of deposits shall be calculated. The same depositor shall not be reported more than once per account.

18. Deposits of an assisting entity whose primary purpose is the issuance of debt securities shall be reported as "Deferred liabilities and bonds" in the clauses.

19. Non-monetary items such as buildings and equipment shall not be included in the reporting.

20. The clause on Large Deposits in Form 03 does not constitute a summation of the clauses on Large Deposits in Form 01. The total of all deposits in the reporting currency in Form 03 shall include the balances in the reporting currency. If the reporting threshold is not exceeded, the balance shall not be reported in any of the sectors (see Clause 16 above).

Guidelines for Forms 04 and 09
21. "Liquidity Indicators":
21.1. The banking institution shall calculate the liquidity ratios for a period of one month ahead under three stress scenarios: regular business, specific stress scenario, systemic stress scenario, and a combination of both (combined stress scenario).
21.2. In each scenario, the following shall be reported: liquidity cushion, projected payments, projected receipts, net projected outflow, and liquidity ratio.

Guidelines for Form 05
22. Balances shall be reported after conversion according to the conversion coefficients set for capital adequacy, distributed into time bands (from over one year to over one year) according to the remaining period.

Guidelines for Form 06
23. See Clause 17 above regarding "Depositor" for this form.
24. Deposits of an assisting entity whose primary purpose is the issuance of debt securities shall not be reported in this form (see Clause 18 above).

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(1/14) [4] Reporting to the Banking Supervision Department Directive on Liquidity Risk Report 827-4

Guidelines for Form 09
25. The banking institution shall calculate the liquidity ratios in Form 09 in a consolidated manner, in its best understanding. This shall include the main components detailed in the guidelines for the group, as provided by the Supervision of Banks.
26. Unless otherwise specified by the Supervision of Banks, the banking institution shall report all group components. If a component is not included in the group, it shall not be reported.

Guidelines for Form 10
27. The clarification regarding "Depositor" in Clause 17 above also applies to Form 10.
28. For the purpose of this form, "Depositor" includes the controlling side, including the controlled side (according to the definitions of the Banking Law), and the controlling side, including other controlled parties (as of 1981). For banking institutions, the definition of "Depositor" shall include daughter companies, except for assisting entities. The reporting institution.
29. These definitions shall refer to the term "Large Credit Exposures" in Clause 7(g) of Directive 810D "Supervisor Identifier" and "Supervisor Name". Banks and public entities shall be included in the definition of large depositors in this form.

(1/14) [4] Reporting to the Banking Supervision Department Liquidity Risk Form 01 - Bank Basis In Thousands of NIS

	Demand	Over 1 month to 1 year	Over 1 year	Maturity Unknown	Balance Sheet Cash Flows
01	Assets
02	Liquidity Liabilities:
03
04
05
06	Government bonds of the State of Israel
07	Government bonds of foreign countries
08	Other government bonds - Investment Grade
09	Other government bonds - Non-Investment Grade
10
11
12	Credit to Government
13	Net Housing Loans to Public
14	Other Credit
15
16
17	Assets in respect of Derivatives
18
19	Total Assets
20
21	Liabilities
22
23
24
25	Large Deposits:
26	Deposits of Institutional Bodies:
27
28
29
30	Liabilities in respect of Derivatives
31
32	Total Liabilities
33	Gap between Assets and Liabilities before Derivatives Impact
34	(Excluding Options) Derivatives
35	(In terms of Underlying Asset) Options
36	Gap between Assets and Liabilities after Derivatives Impact
1	Deposits in Banks in Israel, excluding
	Other Assets
	Assets used as collateral for Clearing Houses and Exchanges:
	Securities Value
	Net Total Credit to Public
	Credit to Government

827-5
Directive on Liquidity Risk Report

Projected future cash flows
Projected future cash flows
Cash Flows
Israeli Currency (including NIS-linked) - Balance Sheet Balance

1 | Deposits in Banks in Israel, excluding
2 | Deposits in Central Banks
3 | Total Securities Value
4 | Securities purchased or borrowed under repurchase agreements 5 | Deposits in Commercial Banks 6 | Deposits in Banks in the Banking Group: | | | | |

	Deposits in Banks in Israel
	Deposits from Banks
7	Deferred liabilities and bonds
8	Other liabilities
9	Deposits in Banks in the Banking Group:
	Total Public Deposits
---	---	---	---	---	---
	Government Deposits
	Securities sold or lent under repurchase agreements

(1/14) [4] Reporting to the Banking Supervision Department Liquidity Risk Form 02 - Bank Basis In Thousands of NIS

	Demand	Over 1 month to 1 year	Over 1 year	Maturity Unknown	Balance Sheet Cash Flows
01	Assets
02	Liquidity Liabilities:
03
04
05
06	Government bonds of the State of Israel
07	Government bonds of foreign countries
08	Other government bonds - Investment Grade
09	Other government bonds - Non-Investment Grade
10
11
12	Credit to Government
13	Net Housing Loans to Public
14	Other Credit
15
16
17	Assets in respect of Derivatives
18
19	Total Assets
20
21	Liabilities
22
23
24
25	Large Deposits:
26	Deposits of Institutional Bodies:
27
28
29
30	Liabilities in respect of Derivatives
31
32	Total Liabilities
33	Gap between Assets and Liabilities before Derivatives Impact
34	Gap between Assets and Liabilities before Derivatives Impact:
35	Gap between Assets and Liabilities before Derivatives Impact:
36	(Excluding Options) Derivatives
37	(In terms of Underlying Asset) Options
38	Gap between Assets and Liabilities after Derivatives Impact
39	Gap between Assets and Liabilities after Derivatives Impact:
40	Gap between Assets and Liabilities after Derivatives Impact:
1	Deposits in Banks in Israel, excluding
2	These rows shall be reported only in the quarterly report
	Deposits in Banks in Israel
	Net Total Credit to Public
1	Deposits in Central Banks
	Total Securities Value
	Deposits in Banks in the Banking Group:
	Securities Value
	Securities purchased or borrowed under repurchase agreements
	Deposits in Commercial Banks
	Deferred liabilities and bonds
	Other liabilities
	Deposits in Banks in the Banking Group:
	Securities sold or lent under repurchase agreements
	Government Deposits

827-6
Directive on Liquidity Risk Report

Projected future cash flows
Projected future cash flows
Cash Flows
Foreign Currency - Balance Sheet Balance

	Demand	Over 1 month to 1 year	Over 1 year	Maturity Unknown	Balance Sheet Cash Flows
	Credit to Government
	Other Assets
	Assets used as collateral for Clearing Houses and Exchanges:
	Total Public Deposits
	Deposits from Banks
	Deposits in Banks in Israel

(1/14) [4] Reporting to the Banking Supervision Department Liquidity Risk Form 03 - Bank Basis In Thousands of NIS

	Demand	Over 1 month to 1 year	Over 1 year	Maturity Unknown	Balance Sheet Cash Flows
01	Assets
02	Liquidity Liabilities:
03
04
05
06	Government bonds of the State of Israel
07	Government bonds of foreign countries
08	Other government bonds - Investment Grade
09	Other government bonds - Non-Investment Grade
10
11
12	Credit to Government
13	Net Housing Loans to Public
14	Other Credit
15
16
17	Assets in respect of Derivatives
18
19	Total Assets
20
21	Liabilities
22
23
24
25	Large Deposits:
26	Deposits of Institutional Bodies:
27
28
29
30	Liabilities in respect of Derivatives
31
32	Total Liabilities
33	Gap between Assets and Liabilities before Derivatives Impact
34	(Excluding Options) Derivatives
35	(In terms of Underlying Asset) Options
36	Gap between Assets and Liabilities after Derivatives Impact
1	Deposits in Banks in Israel, excluding

827-7
Directive on Liquidity Risk Report

Projected future cash flows
Projected future cash flows
Cash Flows
NIS Currency (including NIS-linked) - Balance Sheet Balance

	Demand	Over 1 month to 1 year	Over 1 year	Maturity Unknown	Balance Sheet Cash Flows
	Deposits in Banks in Israel
	Projected future cash flows
	Cash Flows
	Deferred liabilities and bonds
	Other liabilities
	Total Securities Value
	Securities purchased or borrowed under repurchase agreements
	Repurchase
	Deposits from Banks
	Deposits in Banks in Israel
	Deposits in Banks in the Banking Group:
	Assets used as collateral for Clearing Houses and Exchanges:
	Total Public Deposits
	Government Deposits
	Securities sold or lent under repurchase agreements
	Repurchase
1	Deposits in Central Banks
	Credit to Government
	Deposits in Commercial Banks
	Other Assets
	Net Total Credit to Public
	Deposits in Banks in the Banking Group:
	Securities Value

(1/14) [6] Reporting to the Banking Supervision Department
Appendix 897-54' Page - Key Updates

Directive | Circular No. | Date | Remove Page | Insert Page | Subject --- | --- | --- | --- | --- | --- Reporting Directives | 2389 | 21.7.2013 | (12/11) [6] 810D-1 | *(12/11) [6] 810D-1 |

			(12/11) [6] 810D-2-3	(7/13] (7 [810D-2-3
			(12/11) [6] 810D-4	*(12/11) [6] 810D-4
			(12/11) [6] 810D-11	(7/13) [3] 830-1-3
			(12/11) [6] 810D-12	*(12/11) [6] 810D-12
			(2/12) [2] 830-1-3	(7/13) [16] 832-5-8
			(3/13) [15] 832-5-8	*(3/13) [15] 832-13
			(3/13) [15] 832-13	#(3/13) [15] 832-14
			(3/13) [15] 832-14	(7/13) [10] 876-11-12
			(8/12) [9] 876-11-12	(7/13) [4] 897-53
			(4/13) [3] 897-53	(7/13) [1] 897-54
			------------------	*(7/13) [17] 801-1
Reporting in Emergency	2393	30.7.2013	(7/13) [17] 801-1	(7/13) [10] 801-2
			(9/11) [9] 801-2	*(9/11) [39] 801-3
---	---	---	---	---
			(9/11) [39] 801-3	(7/13) [52] 801-4
			(7/13) [51] 801-4	(7/13) [75] 803-1
			(1/13) [74] 803-1	(7/13) [79] 803-2
			(7/13) [78] 803-2	(7/13) [1] 889-1-11
			------------------	*(7/13) [4] 897-53
			(7/13) [4] 897-53	(7/13) [2] 897-54
			(7/13) [1] 897-54	(11/13) [4] 838-1-24
Various Versions	2402	13.11.2013	(11/13) [4] 838-1-23	*(7/13) [4] 897-53
			(7/13) [2] 897-54	(1/14) [3] 828-1-2
Fees for Banking Services	2406	05.01.2014	(10/10) [2] 828-1-2	(1/14) [2] 828-4-5
			(2/10) [1] 828-4-5	(1/14) [3] 828-6-7
---	---	---	---	---
			(10/10) [2] 828-6-7	*(7/13) [4] 897-53
			(7/13) [4] 897-53	(1/14) [4] 897-54
			(11/13) [3] 897-54	(1/14) [8] 869-1-10
Credit Cards	2407	08.01.2014	(8/12) [9] 869-1-6	*(7/13) [4] 897-53
			(7/13) [4] 897-53	(1/14) [5] 897-54
---	---	---	---	---
			(1/14) [4] 897-54	*(1/13) [3] 827-1
Liquidity	2411	21.01.2014	(1/13) [3] 827-1	(1/14) [4] 827-2-4
			(1/13) [3] 827-2-4	(1/14) [4] 827-5-7
---	---	---	---	---
			(1/13) [3] 827-5-7	*(1/13) [3] 827-8
			(1/13) [3] 827-8	*(7/13) [4] 897-53
			(7/13) [4] 897-53	(1/14) [6] 897-54
			(1/14) [5] 897-54	. This page has not been updated but was reprinted following the transition to double-sided printing.
			. Technical correction	#

. This page has not been updated but was reprinted following the transition to double-sided printing.

Technical correction