Bank of Israel
Banking Supervision Policy Department
Tel: 03-5640520 Fax: 03-5661110
528 P.O.B, Tel-Aviv 61004

2 Shevat 5773
January 13, 2013
No. 06-235 2365

To:
Banking Institutions

Subject:
Disclosure of Deposits
(Public Disclosure Regulations)

Introduction

Changes have occurred over the years in the requirements for disclosure of deposits in the financial statements of financial institutions.
In order to align the Public Disclosure Regulations with accepted accounting standards in the US and Europe, a review was conducted of the financial statements of large banks in the US and Europe, and of the SEC's disclosure regulations and international standards.
After consulting with the Committee of the Israel Institute of Certified Public Accountants and the Advisory Committee on Banking Matters, I have amended the Public Disclosure Regulations as detailed below.

Amendments to the Regulations

The Public Disclosure Regulations shall be amended as follows:

Explanatory Notes

The amendments to the Public Disclosure Regulations are intended to provide broader information on sources of activity and to adapt the disclosure requirements for deposits to the accepted requirements for financial statements of banking institutions in the US.

Main Changes in the Public Disclosure Regulations:

5.1. Additional definitions were added for the following terms: deposit, fixed-term deposit, institutional entity, interest-bearing deposit, and non-interest-bearing deposit.

5.2. Additional disclosure requirements were added within the Board of Directors' disclosure report:

5.2.1. An additional requirement to disclose segment activity was added. When relevant, the average balance of public loans and public deposits for each segment shall be disclosed.

5.2.2. An additional requirement to disclose quantitative information regarding the liquidity position was added, specifically the total balance of deposits of the three largest groups of depositors.

5.3. The Board of Directors' review shall be expanded to include disclosure of public deposits, separately disclosing interest-bearing fixed-term deposits and non-interest-bearing deposits.

5.4. Additional explanations regarding public deposits were added: deposits raised in Israel and deposits raised outside Israel shall be disclosed separately, subject to materiality.

5.5. Explanation regarding public deposits:

5.5.1. An additional requirement to disclose the balance of interest-bearing deposits and non-interest-bearing deposits separately was added.

5.5.2. The requirement to disclose deposits on savings and other deposit plans was cancelled. The disclosure of public deposits shall include fixed-term deposits and demand deposits according to the requirement.

5.5.3. An additional reporting requirement was added based on size tiers: 1-10, 10-100, 100-500, and over 500 million NIS.

5.5.4. An additional reporting requirement was added to distinguish between private individuals, institutional entities, other corporations, and others.

5.6. The requirement to disclose bank deposits separately from corporate deposits was cancelled.

5.7. Explanation 17 to "Assets and Liabilities by Basic Inflation Index and Maturity Periods":

5.7.1. An additional requirement to disclose the maturity dates of public loans and public deposits was added.

5.7.2. The lines referring to maturity dates of non-cash items were deleted.

5.8. The disclosure requirements for public deposits were also expanded to quarterly reports.

Transitional and Effective Provisions

The provisions set forth in this circular shall apply retroactively from the 2013 annual report onwards, except for the requirement to disclose the balance of deposits of institutional entities. Thereafter, the provisions shall apply to the report as of March 31, 2013. A banking institution shall not provide comparative figures for any quarter of 2012 regarding disclosure of deposits of institutional entities, as stated above.
A banking institution having difficulty implementing the provisions shall contact Mr. Eido Galil, Head of the Cash Reporting Unit, for specific guidance.

Update of the Compilation

Attached are pages updating the Public Disclosure Regulations Compilation:

Page to Insert | Page to Remove
(1/13) [ ] 3 | 630-3.4 (4/11) [ ] 2
(* 4/11) [ ] 1 | 630-3.5 ( 4/11) [ ] 1
(1/13) [16] | 640-8.2 (12/12) [15]
(* 12/12) [14] | 640-8.3 ( 12/12) [14]
(3/12) [16] | 661-7 ( 3/12) [16]
( 1/13) [13] | 661-8 (11/12) [12]
( 1/13) [ ] 4 | 661-10.3 (11/12) [ ] 3
( 1/13) [ ] 6 | 661-10.4 (11/12) [ ] 5
( 1/13) [11] | 663-1 (11/00) [10]
( 5/07) [13] | 663-2 ( 5/07) [13]
*(4/11) [11] | 669-35 ( 4/11) [11]
( 1/13) [11] | 669-36 (12/04) [10]
( 1/13) [12] | 669-37 (12/04) [11]
*(12/04) [10] | 669-38 ( 12/04) [10]
(4/11) [16] | 669-47 ( 4/11) [16]
( 1/13) [16] | 669-48 (4/11) [15]
( 1/13) [16] | 669-49 (4/11) [15]
( 1/13) [16] | 669-50 (4/11) [15]
( 1/13) [16] | 669-51 (4/11) [15]
( 4/11) [ ] 4 | 669-51.1 ( 4/11) [ ] 4
*(6/09) [ ] 5 | 680-3.1 ( 6/09) [ ] 5
( 1/13) [ ] 9 | 680-3.2 (12/12) [ ] 8
( 1/13) [19] | 680-6 (12/12) [18]
*(12/12) [15] | 680-7 ( 12/12) [15]
( 1/13) [10] | 680-7.1 (12/12) [ ] 9
*(12/12) [ ] 6 | 680-7.2 ( 12/12) [ ] 6
( 1/13) [ ] 2 | 680-7.3 (12/12) [ ] 1
*(12/12) [ ] 1 | 680-7.4 ( 12/12) [ ] 1
*(4/11) [ ] 1 | 680-17.5 ( 4/11) [ ] 1
(# 1/13) [ ] 2 | 680-17.6 ( 4/11) [ ] 1
( 1/13) [ ] 1 | 680-17.7 ------
( 1/13) [ ] 3 | 699-102 ( 12/12) [ ] 2
( 1/13) [ ] 1 | 699-103 -----

This page was reprinted due to side-by-side printing following the transition. This update is identical to the existing text.

Technical correction

With respect,

David Zaken
Inspector of Banks

(1/13) [ ]3 Public Disclosure Regulations: Inspector of Banks 630 - 3.4 'p. Board of Directors' Report

630-3.5 'p. - The following page

(a) (6) The situation of assets and liabilities by basic inflation index and maturity periods, including expected developments, and the effect of changes in prices on foreign currency amounts in the balance sheet. Disclosure shall be given regarding the extent to which the basic inflation index and maturity periods affect the remaining maturities, primarily in foreign currencies and linked currencies. Disclosure shall also be given regarding options presented that affect the basic inflation index and maturity periods, to the extent that these amounts may result in a material change in prices.

(b) Discussion of the liquidity position (short-term up to 12 months and long-term), discussion of funding sources and their impact on events such as increasing or decreasing liquidity ratios, discussion of other significant restrictions or policies on fund transfers within the group, discussion of the introduction of new monetary tools and their impact on the banking institution's business activities and results. Disclosure shall be given of the total balance of the three largest groups of public depositors.

(c) Including the controlling party and the controlled party, including those controlled by the controlling party, as defined in Section 19 of the Banking (Regulation) Law, 1981.

(d) Discussion of the impact of hedges and other transactions on exposure to changes in interest rates and exposure to changes in foreign currency rates. (e) (7) Cancelled.

(f) (13) Meaningful analysis of segment activity and geographic areas, compared to previous years. At least a description of the segment activity of the banking institution shall be included in this explanation. The description shall include details of the essential characteristics of each segment. In determining whether the information is material, the banking institution shall consider qualitative and quantitative factors, including whether the segment has relatively little impact on the banking institution's overall activity, whether the management considers the segment to be important for future profitability, whether the trends emerging from the segment information are distorted, and whether the information is not considered material in relation to the whole, even quantitatively. The description of past and planned business activities shall be included. The description shall include a description of the main products and services of the segment, including the competitive conditions in which the segment operates; the distribution channels and methods; if the banking institution is known or aware of specific markets in which it competes, whether it is dominant in that field or has one or more competitors. The banking institution shall specify the main methods of competing with the competitor, explicitly identifying the competitor. If the banking institution is known or aware of the positive and negative factors affecting its competitive position, it shall explain them. It is recommended to disclose additional information in the format required in Explanation 29, provided that this information is presented consistently across all segments, including various metrics such as segment return on assets, segment efficiency ratio, etc. When relevant, disclosure shall be given of the average balance of public loans and public deposits associated with each segment.

(g) A banking institution shall describe the risks arising from its operations outside Israel, including more than one or all of these operations.

(1/13) [16] Public Disclosure Regulations: Inspector of Banks 640 8.2 - 'p. Board of Directors' Review

640 - 8.3 'p. - The following page

(1- Continued) (1) Analysis of changes in income and expenses (interest income and expenses)

' Part B - Average balances of interest rates and liabilities - capital ' Part A - Interest income and expenses of the consolidated banking companies

Item	20X0 Average Balance	20X0 Interest Expense	20X0 % of Avg Balance	20X-1 Average Balance	20X-1 Interest Expense
Interest Expense
Average Interest Expense
Average Interest Expense
Interest-bearing Liabilities
Public Deposits
0.00%	0.00%	0.00%	0	0	Demand
0.00%	0.00%	0.00%	0	0	Fixed-term
0.00%	0.00%	0.00%	0	0	Outside Israel
0.00%	0.00%	0.00%	0	0	Demand
0.00%	0.00%	0.00%	0	0	Fixed-term
0.00%	0.00%	0.00%	0	0	Total
Government Deposits
0.00%	0.00%	0.00%	0	0	In Israel
0.00%	0.00%	0.00%	0	0	Outside Israel
0.00%	0.00%	0.00%	0	0	Total
Central Bank Deposits
0.00%	0.00%	0.00%	0	0	In Israel
0.00%	0.00%	0.00%	0	0	Outside Israel
0.00%	0.00%	0.00%	0	0	Total
Bank Deposits
0.00%	0.00%	0.00%	0	0	In Israel
0.00%	0.00%	0.00%	0	0	Outside Israel
0.00%	0.00%	0.00%	0	0	Total
Sold or Lent under Repurchase Agreements
0.00%	0.00%	0.00%	0	0	In Israel
0.00%	0.00%	0.00%	0	0	Outside Israel
0.00%	0.00%	0.00%	0	0	Total
Debt Securities
0.00%	0.00%	0.00%	0	0	In Israel
0.00%	0.00%	0.00%	0	0	Outside Israel
0.00%	0.00%	0.00%	0	0	Total
Other Liabilities
0.00%	0.00%	0.00%	0	0	In Israel
0.00%	0.00%	0.00%	0	0	Outside Israel
0.00%	0.00%	0.00%	0	0	Total
0.00%	0.00%	0.00%	0	0	Total Interest-bearing Liabilities
0	Non-interest-bearing Public Deposits
0	Interest-bearing Credit Card Receivables
0	Other Interest-bearing Liabilities
0	Total Liabilities
0	Total Equity
0	Total Liabilities and Equity
0.00%	0.00%	0.00%	Interest Rate Spread
Net Yield on Interest-bearing Assets
0.00%	0.00%	0.00%	0	0	In Israel
0.00%	0.00%	0.00%	0	0	Outside Israel
0.00%	0.00%	0.00%	0	0	Total
0.00%	0.00%	0.00%	0	0
Total Interest-bearing Liabilities attributed to activities
Outside Israel

20X-2 20X-1 20X0

See pages 640-8.1 to 640-8.4 - Note 640-8.5

(1/13) [13] Public Disclosure Regulations: Inspector of Banks 661 8 - 'p. Annual Financial Report

661-8.1 'p. - The following page

– "Underlying" - of a derivative instrument)
Exchange rate of foreign currency, commodity price, security price, interest rate, index of prices, or other variable rate, including the occurrence or non-occurrence of an event. The underlying may be a rate or price of a liability or asset, but not the liability or asset itself. Payments may be set according to a schedule of times specified in the contract, such as payment of a certain amount.

– "Securities" - as defined in the Securities Regulations, 1970 ("Securities Regulations")

– "Institutional Entity" - as defined in the Regulation of Investment Advice, Investment Management and Marketing of Securities Law, 1995

– "Financial Report" - balance sheet, statement of changes in equity, statement of cash flows, and statement of profit and loss, including notes thereto, prepared as of December 31 for the period ended, and for one year prior to the reporting date.

– "Director" - as defined in Section 240 of the Companies Law, 1999, with financial and accounting expertise.

– "Loan" - including deposit

– "Housing Loan" - as defined in the Banking (Regulation of Housing Loans) Law, 1951

– "The Institute" - Israel Institute of Certified Public Accountants

– "Government" - government companies established under the Government Companies Law, 1965, excluding government corporations

– "Inspector" - the Inspector of Banks appointed under Section 5 of the Banking Ordinance, 1941

– "Master Netting Arrangement" - a contractual arrangement of the same type between two parties, or a contract of exchange, that allows for net settlement with a single counterparty of different types of contracts subject to the arrangement, in the event of default or termination of one of the contracts.

– "Firm Commitment" - a binding agreement, generally legally enforceable, with an unrelated party, having the following characteristics:
A. Specifies all significant terms, including the fixed quantity, fixed price, and fixed timing of the transaction.

(1/13) [4] Public Disclosure Regulations: Inspector of Banks 661 - 10.3 'p. Annual Financial Report

If two of the following conditions are met, foreign currency credit risk shall be classified as impaired:

It is probable (Reasonably Possible) that the liability related to the off-balance sheet item will materialize (Section 47(b)(z) - see);
The liability related to the off-balance sheet item will result in the acquisition of claims that are not suitable for classification as better than impaired claims.

"Impaired Credit Risk" – "Impaired Credit Risk"

It is clarified for this purpose:
If two of the following conditions are met, foreign currency credit risk shall be classified as impaired:

It is probable that the liability related to the off-balance sheet item will materialize (Section 47(b)(z) - see);
The liability related to the off-balance sheet item will result in the acquisition of claims that are not suitable for classification as impaired or that should not be recognized as assets on the balance sheet.

"Reporting Amount" - as defined in Accounting Standard No. 12 (as amended) of the Institute of Certified Public Accountants – Discontinuation of Conformity with Accounting Standards.

– "Notional Amount" - number of units of currency, shares, or other units of measure for commodities (bushels, pounds).

– "Forecasted Transaction" - a transaction expected to occur, for which there is no firm commitment. No transaction has yet been executed or occurred. The transaction is expected to occur upon the occurrence of the event or performance of the activity. A forecasted transaction does not give the banking institution a present obligation for future concessions.

– "Present Value" - a tool used to link future cash flows or amounts to their present value. Present value techniques vary in the use of discount rates (application of the income approach). See Section 19 for the definition of the discount rate technique.

– "Deposit" - including any loan.
– "Demand Deposit" - a non-fixed-term deposit.
– "Fixed-term Deposit" - deposits in which the depositor has no right to withdraw, and for a period of 6 days, the depositor is not authorized to withdraw, and if early withdrawal is required, a penalty of at least 7 days' interest is imposed on the amount withdrawn. – "Call Deposits" - deposits whose repayment is conditional on the collection of credit from the depositor, and there is no risk to the institution. These deposits are given to a group of borrowers or a borrower under the same conditions as loans, in the same currency or indexation type and periods as determined by the Inspector. – "Designated Deposits" - deposits given to a group of borrowers or a borrower under the same conditions as loans, in the same currency or indexation type and periods as determined by the Inspector. If the banking institution has given a loan in a different currency than the deposit, or hedges the foreign currency exchange rate risk of the loan or deposit, these deposits are not considered "designated" and are not conditional on the collection of credit from the depositor. – "Interest-bearing Deposit" - a deposit for which the banking institution pays the depositor compensation in the form of an adjusted interest rate periodically in response to the use of the deposit funds. Even if the interest rate is reduced to zero, it must be reported as an interest-bearing deposit if it can become a financial asset or loan depending on market interest rate changes. – "Non-interest-bearing Deposit" - "Non-interest-bearing Deposit" – "Activity Outside Israel" - "Activity Outside Israel" – "Related Party" - as defined in International Accounting Standard No. 24 "Related Party Disclosures", excluding related parties. – "Public" - government, excluding foreign governments and banks. – "Class of Financing Receivable" - a class of receivables determined on the basis of all of the following factors:

Characteristics of the risk of the receivable.
The banking institution's system for monitoring credit risk.

– "Comprehensive Income" - the change in the banking institution's equity during a period from transactions and events other than those resulting from changes in equity from non-owner sources. This includes all changes in equity during the period, except those resulting from investments by owners and distributions to owners.

– "Interest" - including differences in inflation indexation to the consumer price index, differences in interest rates, and differences in inflation indexation to the principal.

– "Fair Value" - the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

– "LIBOR Swap Rate" - the fixed interest rate in a contract for the exchange of interest rates in a single currency, with a constant notional amount, referencing the London Interbank Offered Rate (LIBOR). This is a constant-notional interest rate swap. The variable leg refers to LIBOR plus a spread without moving to LIBOR. This fixed interest rate is such that the fair value of the derivative is zero at the inception of the swap contract. The present value of the fixed cash flows is equal to the present value of the variable cash flows.

(1/13) [11] Public Disclosure Regulations: Inspector of Banks 663 - 1 'p. Annual Financial Report

Liabilities and Equity

Public Deposits 36.

a. Public deposits shall be presented in the balance sheet in one note in total, and the components shall be disclosed in Note 9 in the format specified in this section.

b. Part A of the Explanation "Types of Deposits by Type of Depositor and Place of Collection":

Disclosure shall be given separately of deposits raised outside Israel, when "deposits raised outside Israel" is material, meaning the balance of deposits raised outside Israel exceeds 10% of the balance in the corresponding period in the report, or the expenses related to deposits raised outside Israel.
"Private Individuals" - individuals, including individual account holders. Individuals are classified as "Private Individuals" if they have no liability to the bank or their liability is classified as "Private Individuals" for other housing loans. It is clarified that when a part of an individual's liability is classified as "Private Individuals," the individual shall not be classified as "Private Individuals" if they belong to a different economic sector.
"Other Corporations" - any reporter other than "Institutional Entities" or "Private Individuals."

It is clarified: "Public Deposits by Size": Part B of the Explanation:

For a depositor with multiple accounts, the total balance of deposits shall be calculated as one depositor.
Balances in joint accounts shall be included in the total balance of the largest depositor among the account holders.
The banking institution shall indicate the highest tier deposit limit. For example, if the highest tier deposit limit is lower than the format shown in this explanation.
At least the data from the relevant highest tier onwards shall be provided by the banking institution. The tier classification shall be determined based on the total of all deposits raised, on a consolidated basis ("specific consolidation" or "consolidated reporting companies from all depositors of the same depositor").

Bank Deposits 37.

a. Bank deposits shall include deposits from banks in Israel, including monetary loans from the Bank of Israel, other central bank deposits, and designated deposits.

b. Disclosure shall be given in Note B, sorting between deposits raised in Israel and deposits raised outside Israel, subject to materiality, and sorting between deposits from central banks and deposits from commercial banks:

Demand deposits;
Fixed-term deposits;
The banking institution's liabilities for acceptance of credit and exchange instruments.

The banking institution shall reduce this amount by the amount of the acceptance it purchased; certificates of acceptance.

(1/13) [11] Public Disclosure Regulations: Inspector of Banks 669-36 'p. Annual Financial Report

Note 9 - Public Deposits

a. Types of Deposits by Type of Depositor and Place of Collection

	20X-1	20X0
In Israel
Demand
Non-interest-bearing	0	0
Interest-bearing	0	0
Demand Total	0	0
*Fixed-term	0	0
Total Deposits in Israel	0	0
Outside Israel
Demand
Non-interest-bearing	0	0
Interest-bearing	0	0
Demand Total	0	0
*Fixed-term	0	0
Total Deposits Outside Israel	0	0
Total Public Deposits	0	0

Disclosure shall be given of the balance of non-interest-bearing fixed-term deposits, if material.
Identifying:
0 Deposits of Private Individuals
0 Deposits of Institutional Entities
0 Deposits of Other Corporations

New Shekels in Millions
Consolidated
As of December 31
Banking Institution
As of December 31
Reporting Amounts

b. Public Deposits by Size on a Consolidated Basis

Deposit Limit Tier	20X-1 Balance (Million NIS)	20X0 Balance (Million NIS)	20X-1 Balance (Million NIS)	20X0 Balance (Million NIS)
1 to 10	0	0	0	0
10 to 100	0	0	0	0
100 to 500	0	0	0	0
500 to 1000	0	0	0	0
Over 500	0	0	0	0
Total	0	0	0	0

Note: When a banking institution's highest tier deposit limit is lower than the highest tier deposit limit, the highest tier deposit limit shall be indicated.

(1/13) [12] Public Disclosure Regulations: Inspector of Banks 669-37 'p. Annual Financial Report

Note 10 - Bank Deposits

	19X-1	19X0
Banking Institution Consolidated
In Israel
Commercial Banks
Demand Deposits	0	0
Fixed-term Deposits	0	0
Acceptances	0	0
Central Banks
Demand Deposits	0	0
Fixed-term Deposits	0	0
Outside Israel
Commercial Banks
Demand Deposits	0	0
Fixed-term Deposits	0	0
Acceptances	0	0
Central Banks
Demand Deposits	0	0
Fixed-term Deposits	0	0
Total Bank Deposits	0	0

Note 17 - Assets and Liabilities by Basic Inflation Index and Maturity Periods

a. Consolidated as of December 31, 19X0

	Expected Cash Flows	Contractual Maturities	Balance Sheet Balance	Reporting Amounts	Yield Rate
	No Maturity	Up to 1 Month	Over 1 Month to 3 Months	Over 3 Months to 1 Year	Over 1 Year to 2 Years	Over 2 Years to 3 Years	Over 3 Years to 4 Years	Over 4 Years to 5 Years	Over 5 Years to 10 Years	Over 10 Years to 20 Years	Over 20 Years	Total
Cash Flows
No Maturity
Total
Contractual
Non-Israeli Currency
Assets	0	0	0
Liabilities	0	0	0
Difference	0	0	0
Excluding Derivatives (Options)	0	0	0
Israeli Currency Linked to Index
Assets	0	0	0
Liabilities	0	0	0
Difference	0	0	0
Excluding Derivatives (Options)	0	0	0
Local Activity - Non-Israeli Currency
Assets	0	0	0
Liabilities	0	0	0
Difference	0	0	0
Excluding Derivatives (Options)	0	0	0
Foreign Activity - Non-Israeli Currency
Assets	0	0	0
Liabilities	0	0	0
Difference	0	0	0
Excluding Derivatives (Options)	0	0	0
Total
Assets	1	0
Liabilities	2	0	0
Difference	0	0	0
Excluding Derivatives (Options)	0	0	0
Of which:
Public Credit	1	0
Public Deposits	2	0	0

The expected future contractual cash flows for assets and liabilities by basic inflation index and maturity periods are presented in this note, net of the effect of accounting write-offs and provisions for credit losses.
Includes assets with no maturity period, amount 0 in "H.S."
Includes indexation to foreign currency.
Includes off-balance sheet amounts for derivatives, as included in Note 16 "Assets and Liabilities by Basic Inflation Index and Maturity Periods".
The discount rate is the contractual yield rate.

The data presented only relates to the assets and liabilities referred to. Comparative data for the previous reporting year is not required to be detailed in relation to the specified data in this note. (And options) Options. (With reference to the appropriate column, the amounts of credit facilities exceeding the "H.S." framework and the amounts of "H.S." with credit conditions shall be indicated).

Inspector of Banks: Public Disclosure Regulations ] 16 ) [ 1/13

Annual Financial Report p. 48 - 669

Israeli Currency Indexed to Index
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Israeli Currency Not Indexed to Index
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Local Activity - Foreign Currency
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Foreign Activity - Long Arm
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Total
Assets 1 0
Liabilities 2 0
Difference - 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

1 0 Of which: Consumer Credit
2 0 0 - 0 Of which: Consumer Deposits

The data presented in this note* are based on the remaining maturity periods of the expected future cash flows of assets and liabilities according to basic indexation, net of:
. The effect of accounting write-offs and provisions for credit losses.
. Assets with no maturity period included in the total amount of 0 assets that have already matured . Including indexation to foreign currency* . Including off-balance sheet amounts for derivatives, as included in Note 16' on assets and liabilities according to basic indexation . The contractual yield rate is the rate deducted from the item in this note relating to the expected future cash flows presented, which are added to the balance sheet item*

It is possible to present only the data relating to the total of assets, liabilities, difference, excluding derivatives. There is no obligation to detail comparison data for the previous reporting year relative to the data specified in this note. (Options (and options) .(With reference to the appropriate column, the amounts of credit facilities exceeding the limits of "HCH" and amounts of "HCH" included in the facilities will be indicated in a note to the table)

Superintendent of Banks: Reporting to the Public ] 16 ) [ 1/13 (
Page '669 - 4
Annual Financial Report

Israeli Currency Indexed to Index
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Israeli Currency Not Indexed to Index
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Local Activity - Foreign Currency
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Foreign Activity - Long Arm
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Total
Assets 1 0
Liabilities 2 0
Difference - 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

1 0 Of which: Consumer Credit
2 0 0 - 0 Of which: Consumer Deposits

Superintendent of Banks: Reporting to the Public ] 16 ) [ 1/13 (
Page '669 - 50
Annual Financial Report

Israeli Currency Indexed to Index
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Israeli Currency Not Indexed to Index
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Local Activity - Foreign Currency
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Foreign Activity - Long Arm
Assets 0
Liabilities 0
Difference 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

Total
Assets 1 0
Liabilities 2 0
Difference - 0
Excluding Derivatives (Options - 0 - 0) in terms of underlying asset (Options

1 0 Of which: Consumer Credit
2 0 0 - 0 Of which: Consumer Deposits

Superintendent of Banks: Reporting to the Public ] 16 ) [ 1/13 (
Page '669 - 51
Annual Financial Report

(1/13) [9] Superintendent of Banks: Reporting to the Public
Page 680 3.2 - Quarterly Report of a Banking Entity

Page 680-4 ' – The following page
Quarterly Management Review

The Quarterly Management Review will be prepared in the format of the attached examples, as follows:
6.
Data included in the Quarterly Financial Report, as needed:
. Addition 'a - Analysis of changes in income and expenses and income and expense ratios . Addition 'b - Exposure to changes in interest rates on a consolidated basis . Addition 'c - Total credit risk by economic sector on a consolidated basis . Addition 'd - Exposure to foreign countries on a consolidated basis

Disclosure Statement

a. The Quarterly Disclosure Statement will be prepared in the format of the example on pages 680-10.3 to 680-10.6.

Summary of the Quarterly Financial Report

7.
The summary of the quarterly financial report will include a summary of the quarterly financial statements and notes, as follows:
The summary of the quarterly financial report will be prepared in the format of the attached examples of quarterly financial statements.
34. It will include additional selected condensed notes in accordance with the rules set in Standard No. 34.

Summary of Quarterly Financial Statements – 'a Addition ; 'a1 - Summary Balance Sheet ; 'a2 - Summary Income Statement ; 'a3 - Summary Statement of Changes in Equity ; 'a4 - Summary Statement of Cash Flows - Bank ; 'a5 - Summary Statement of Cash Flows - Specialized Banking Entity

Additional Notes to Sample Quarterly Financial Statements – 'b Addition 1 - Investments in Securities 2 - Provisions for Credit Losses on Consumer Credit a - Consumer Deposits 2 3 - Capital Adequacy According to Superintendent of Banks Regulations 4 - Assets and Liabilities According to Basic Indexation 5 - Contingent and Other Commitments a. Off-balance sheet financial instruments b. Other contingent and other commitments 6 - Derivatives Activity – Credit Risk, Volume and Maturities a. Activity volume on a consolidated basis b. Credit risk arising from derivatives by counterparty contract on a consolidated basis
c. Detail of maturities – Nominal Amounts
7 - Fair Value Estimates and Balances of Financial Instruments a - Items measured at fair value on a recurring basis b - Changes in items measured at fair value on a recurring basis included in Level 3 c - Quantitative information on items measured at fair value included in Level 3 8 - Income and Expenses 9 - Non-Financing Income from Interest 10 - Describe the changes since the last annual report basis in the sectoral activity breakdown; It is clarified that Section 79.y applies to annual financial reports as well as quarterly reports. 11- (Loss) Profit Including Other Comprehensive Income

The examples are for the second quarter of the year.

(1/13) [19] Superintendent of Banks: Reporting to the Public
Page 680 6 - Quarterly Report of a Banking Entity

Page 680-7 ' – The following page
List of Additions and Notes to Examples

Description | Page
Quarterly Management Review Addition
'a - Analysis of changes in income and expenses and income and expense ratios | 680-7 'b - Exposure to changes in interest rates | 680-10.1 'c - Total credit risk by economic sector on a consolidated basis | 680-10.2 'd - Exposure to foreign countries | 680-10.2.3 Disclosure Statement Disclosure Statement | 680-10.3 Summary of Quarterly Financial Statements Addition 'a1 - Summary Balance Sheet | 680-11 'a2 - Summary Income Statement | 680-12 'a3 - Summary Statement of Changes in Equity | 680-13 'a4 - Summary Statement of Cash Flows - Bank | 680-14 'a5 - Summary Statement of Cash Flows - Specialized Banking Entity | 680-15 Certain Condensed Notes to Sample Financial Statements 1 - Investments in Securities | 680-16 2 - Provisions for Credit Losses on Consumer Credit | 680-17 a2 - Consumer Deposits | 680-17.7 3 - Capital Adequacy According to Superintendent of Banks Regulations | 680-18 4 - Assets and Liabilities According to Basic Indexation | 680-19 5 - Contingent and Other Commitments a5 - Off-balance sheet financial instruments | 680-20 b - Other contingent and other commitments | 680-20 6 - Derivatives Activity – Credit Risk, Volume and Maturities a6 - Activity volume on a consolidated basis | 680-21 b - Credit risk arising from derivatives by counterparty contract on a consolidated basis | 680-22 c - Detail of maturities – Nominal Amounts | 680-22 7 - Fair Value Estimates and Balances of Financial Instruments a7 - Items measured at fair value on a recurring basis | 680-22.1 b - Changes in items measured at fair value on a recurring basis included in Level 3 | 680-22.2 c - Quantitative information on items measured at fair value included in Level 3 | 680-22.4 8 - Income and Expenses | 680-23 9 - Non-Financing Income from Interest | 680-23.1 a9 - Other Income | 680-24 10 - Sectoral Activity | 680-25 11- (Loss) Profit Including Other Comprehensive Income | 680-26

(1/13) [10] Superintendent of Banks: Reporting to the Public
Page 680 - 7.1 Quarterly Report of a Banking Entity

Page 680 - 7.2 ' – The following page

(1- Continuation (Analysis of changes in income and expenses and income and expense ratios) 1 'a Addition - Interest Rates of Income and Expenses of the Bank and its Consolidated Companies

Reported Amounts

	3 Months Ended June 30, 20X-1		3 Months Ended June 30, 20X0
	Average Balance	Interest Expense Rate	Average Balance	Interest Expense Rate
	NIS 'M	NIS 'M	%	NIS 'M	NIS 'M	%

Interest-Bearing Liabilities
Consumer Deposits
0.00% 0.00% 0 0 In Israel
0.00% 0.00% 0 0 On Demand
0.00% 0.00% 0 0 Fixed Term
0.00% 0.00% 0 0 Outside Israel
0.00% 0.00% 0 0 On Demand
0.00% 0.00% 0 0 Fixed Term
0.00% 0.00% 0 0 Total
Government Deposits
0.00% 0.00% 0 0 In Israel
0.00% 0.00% 0 0 Outside Israel
0.00% 0.00% 0 0 Total
Deposits with Central Banks
0.00% 0.00% 0 0 In Israel
0.00% 0.00% 0 0 Outside Israel
0.00% 0.00% 0 0 Total
Deposits with Banks
0.00% 0.00% 0 0 In Israel
0.00% 0.00% 0 0 Outside Israel
0.00% 0.00% 0 0 Total
Securities Sold or Lent under Repurchase Agreements 0.00% 0.00% 0 0 In Israel 0.00% 0.00% 0 0 Outside Israel 0.00% 0.00% 0 0 Total Bonds 0.00% 0.00% 0 0 In Israel 0.00% 0.00% 0 0 Outside Israel 0.00% 0.00% 0 0 Total Other Liabilities 0.00% 0.00% 0 0 In Israel 0.00% 0.00% 0 0 Outside Israel 0.00% 0.00% 0 0 Total Total Interest-Bearing Liabilities 0.00% 0.00% 0 0 Non-Interest-Bearing Consumer Deposits 0 0 Non-Interest-Bearing Credit Card Receivables 0 0 8 Other Non-Interest-Bearing Liabilities 0 0 Total Liabilities 0 0 Total Equity 0 0 Total Liabilities and Equity 0 0 Interest Rate Spread 0.00% 0.00% Net Yield on Interest-Bearing Assets 9 0.00% 0.00% 0 0 In Israel 0.00% 0.00% 0 0 Outside Israel 0.00% 0.00% 0 0 Total 0.00% 0.00% 0 0 Total Interest-Bearing Liabilities Attributable to Activities Outside Israel

3 Months Ended June 30, 20X-1
3 Months Ended June 30, 20X0

See pages 680-7 to 680-8 – Note 680-9

(1/13) [2] Superintendent of Banks: Reporting to the Public
Page 680 - 7.3 Quarterly Report of a Banking Entity

Page 680 - 7.4 ' – The following page

(3- Continuation (Analysis of changes in income and expenses and income and expense ratios) 1 'a Addition - Interest Rates of Income and Expenses of the Bank and its Consolidated Companies

Reported Amounts

	6 Months Ended June 30, 20X-1		6 Months Ended June 30, 20X0
	Average Balance	Interest Expense Rate	Average Balance	Interest Expense Rate
	NIS 'M	NIS 'M	%	NIS 'M	NIS 'M	%

6 Months Ended June 30, 20X-1
6 Months Ended June 30, 20X0

See pages 680-7 to 680-8 – Note 680-9

Consolidated - Bank Mortgages - Off-Balance Sheet Credit Instruments and Provisions for Credit Losses 2.(a – )Note 3 Months Ended June 30, 19X-1 19X0

Provision for Credit Losses * Provision for Credit Losses
Housing Loans Housing Loans
Total | By Depth of Delinquency | Total | By Depth of Delinquency (2) | (1) | (2) | (1) | (2) | (1) | (2) | (1) Reported Amounts | Reported Amounts NIS Millions | NIS Millions

Balance at Beginning of Period 0
Expenses for Credit Losses 0
Accounting Write-offs (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Debts Collected from Previous Years 0 Write-offs, Net (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Other 0 Balance at End of Period 0

Composition of Balance at End of Period
Consumer Credit 0
Non-Consumer Debt 0
Off-Balance Sheet Credit Instruments 0 - - - 0 - - - (Included in Other Commitments)

6 Months Ended June 30, 19X-1 19X0

Provision for Credit Losses * Provision for Credit Losses
Housing Loans Housing Loans
Total | By Depth of Delinquency | Total | By Depth of Delinquency (2) | (1) | (2) | (1) | (2) | (1) | (2) | (1) Reported Amounts | Reported Amounts NIS Millions | NIS Millions

Provision calculated on a specific basis for loans regarding which the provision does not include interest on debts in delinquency.
1- Calculated on a specific basis
2- Calculated on a collective basis

Superintendent of Banks: Reporting to the Public [ 2 ] ( 1/13 ( Quarterly Report of a Banking Entity Page '680 - 17.6 The following page – Page ' 680-17.7

( 1/13) [ ]1 Superintendent of Banks: Reporting to the Public
Page 680 - 17.7 Quarterly Report of a Banking Entity

Page 680-18 ' – The following page

Note a2 - Consumer Deposits
Types of deposits by type of depositor and by place of gathering.

	31.12.20X-1	30.6.20X-1	30.6.20X0
Audited	Unaudited	Audited	Unaudited
In Israel
On Demand
Non-Interest Bearing	0
Interest Bearing	0
On Demand Total	0
*Fixed Term	0
Total Deposits in Israel	0
Outside Israel
On Demand
Non-Interest Bearing	0
Interest Bearing	0
On Demand Total	0
*Fixed Term	0
Total Deposits Outside Israel	0
Total Consumer Deposits	0

Disclosure will be given for the balance of fixed-term non-interest-bearing deposits, if material.
Of which:
| | | |
|---|---|---|
| Deposits of Private Individuals | 0 | |
| Deposits of Institutional Bodies | 0 | |
| Deposits of Corporations and Others | 0 | |

Unaudited Consolidated
Reported Amounts
NIS Millions

b. Consumer Deposits by Size on a Consolidated Basis.

	31.12.20X-1	30.6.20X-1	30.6.20X0
Audited	Unaudited	Audited	Unaudited
Deposit Limit	NIS Millions	NIS Millions	NIS Millions	NIS Millions
1 and below	0
Over 1 to 10	0
Over 10 to 100	0
Over 100 to 500	0
Over 500	0
Total	0

Note:
When the highest tier deposit limit of the banking entity is lower than the highest tier deposit limit:
. The highest tier deposit limit of the banking entity must be indicated in this note.

( 1/13) [ ]3 Superintendent of Banks: Reporting to the Public
Page 699 - 102 Updates
(" - "Income and Expense Ratios" - 'c Addition") (2353 06-' Ch - Circular Update dated 23/12/2012)

Page to Insert | Page to Remove
(* 6/08) [ ]2 691C-12 | (* 6/08) [ ]2 691C-12
( 12/12) [ ]3 691G-4.1 | ( 12/08) [ ]2 691G-4.1 (* 6/09) [ ]2 691G-5 | ( 6/09) [ ]2 691G-5 *(12/12) [ ] 2 699-98 | (12/12) [ ] 2 699-98 ( 12/12) [ ] 2 699-99 | ( 12/12) [ ] 1 699-99 ( 12/12) [ ] 1 699-100-102 | -----

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Adoption of International Financial Reporting Standards ("IFRS") (2354 06-' Ch - Circular Update dated 23/12/2012) ("Certain in Reporting to the Public")

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( 12/12) [14] 661-14 | ( 4/11) [13] 661-14
*(4/11) [ ]11 661-14.1 | ( 4/11) [ ]11 661-14.1 ( 12/12) [ ] 3 661-14.2 | ( 5/12) [ ] 2 661-14.2 *(12/11) [ ] 2 661-14.3 | ( 12/11) [ ] 2 661-14.3 *(3/12) [ ] 1 662-11.4 | ( 3/12) [ ] 1 662-11.4 ( 12/12) [15] 662-12 | ( 4/11) [14] 662-12 *(1/08) [ ] 2 696-9 | ( 1/08) [ ] 2 696-9 ( 12/12) [ ] 3 696-10 | ( 11/11) [ ] 2 696-10 ( 12/12) [ ] 2 699-102 | ( 12/12) [ ] 1 699-102

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("Disclosure on Deposits") (2365 06 -' Ch - Circular Update dated 13/1/2013)

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(1/13) [ ] 3 630-3.4 | (4/11) [ ] 2 630-3.4
(* 4/11) [ ] 1 630-3.5 | ( 4/11) [ ] 1 630-3.5 (1/13) [16] 640-8.2 | (12/12) [15] 640-8.2 (* 12/12) [14] 640-8.3 | ( 12/12) [14] 640-8.3 *(3/12) [16] 661-7 | ( 3/12) [16] 661-7 ( 1/13) [13] 661-8 | (11/12) [12] 661-8

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( 1/13) [ ]1 Superintendent of Banks: Reporting to the Public
Page 699 - 103 Updates
Continuation ("Disclosure on Deposits") (2365 06 -' Ch - Circular Update dated 13/1/2013)

Page to Insert | Page to Remove
( 1/13) [ ] 4 661-10.3 | (11/12) [ ] 3 661-10.3 ( 1/13) [ ] 6 661-10.4 | (11/12) [ ] 5 661-10.4 ( 1/13) [11] 663-1 | (11/00) [10] 663-1 (* 5/07) [13] 663-2 | ( 5/07) [13] 663-2 *(4/11) [ ]11 669-35 | ( 4/11) [ ]11 669-35 ( 1/13) [11] 669-36 | (12/04) [10] 669-36 ( 1/13) [12] 669-37 | (12/04) [11] 669-37 *(12/04) [10] 669-38 | ( 12/04) [10] 669-38 (4/11) [ ]16 669-47 | ( 4/11) [ ]16 669-47 ( 1/13) [16] 669-48 | (4/11) [15] 669-48 ( 1/13) [16] 669-49 | (4/11 15[) ] 669-49 ( 1/13) [16] 669-50 | (4/11) [15] 669-50 ( 1/13) [16] 669-51 | (4/11) [15] 669-51 ( 4/11) [ ] 4 669-51.1 | ( 4/11) [ ] 4 669-51.1 *(6/09) [ ] 5 680-3.1 | ( 6/09) [ ] 5 680-3.1 ( 1/13) [ ] 9 680-3.2 | (12/12) [ ] 8 680-3.2 ( 1/13) [19] 680-6 | (12/12) [18] 680-6 *(12/12) [ ]15 680-7 | ( 12/12) [ ]15 680-7 ( 1/13) [10] 680-7.1 | (12/12) [ ] 9 680-7.1 *(12/12) [ ] 6 680-7.2 | ( 12/12) [ ] 6 680-7.2 ( 1/13) [ ] 2 680-7.3 | (12/12) [ ] 1 680-7.3 *(12/12) [ ] 1 680-7.4 | ( 12/12) [ ] 1 680-7.4 *(4/11) [ ] 1 680-17.5 | ( 4/11) [ ] 1 680-17.5 (# 1/13) [ ] 2 680-17.6 | ( 4/11) [ ] 1 680-17.6 ( 1/13) [ ] 1 680-17.7 | ------ ( 1/13) [ ] 3 699-102 | ( 12/12) [ ] 2 699-102 ( 1/13) [ ] 1 699-103 | -----

This page was reprinted due to the transition to double-sided printing. The existing text in this update is identical to the existing text in this printing.
. Technical Correction #