Region

Jurisdiction

Regulator

2013-01-02

Added 2026-08-21

Exposure to Foreign Countries

The Banking Supervision Department amends Reporting Instruction No. 834 regarding quarterly exposure to foreign countries, updating definitions for 'problematic credit risk' and 'problematic commercial credit risk' in Section 3, and modifying the 'Guidelines for Filling the Report' in Section 4 to reflect post-write-off balances before impairment provisions and collateral effects. The amendments also update Annex 01 to remove the term 'commercial' in specific rows, adjust net deduction calculations, and revise references for overdue housing loans to align with a 90-day delinquency threshold. These changes apply to all banking institutions, credit card companies, and financial corporations, with the amendments taking effect on December 31, 2012.

Israel

Bank of Israel

Bank of Israel Banking Supervision Department Policy

Fax: 02-6524590 Tel: 02-6552475 P.O.B. 780, Jerusalem 91007

Jerusalem, 10 Tevet 5773 January 2, 2013

Circular No. 06-2360

To: Banking Institutions, Credit Card Companies

Subject: Exposure to Foreign Countries (Quarterly) (Reporting Instruction No. 834)

Introduction

Further to Circular No. 2331 dated March 25, 2012, which amended the definitions in Annex B to the Management Review, the Reporting Instruction No. 834 (Exposure to Foreign Countries) has been amended.
Additionally, Reporting Instruction No. 803 (Banking Reports) has been updated.

Amendments to the Instructions

Reporting Instruction No. 834 – Exposure to Foreign Countries (Quarterly)

In Section 3 (Definitions), replace: "Problematic Commercial Credit Risk" with "Problematic Credit Risk";
In Section 4 (Guidelines for Filling the Report), replace: "Net balance after accounting write-offs, before impairment provisions for credit losses" with "Net balance after accounting write-offs, before impairment provisions for credit losses, before the effect of collateral permissible for deduction for the borrower's and the borrower group's liabilities, variable, not";
The following changes apply to Annex 01 (Consolidated – Exposure to Foreign Countries):

a. In rows 13 and 19, delete the word "Commercial";

b. In Note 2', replace the ending "Net balance after accounting write-offs, before impairment provisions for credit losses" with "Before the effect of impairment provisions for credit losses, before the effect of collateral permissible for deduction for the borrower's and the borrower group's liabilities";

c. Delete Note 4' (now Note 5') and Note 5' (now Note 6');

d. In Note 5' (now Note 6'), replace the ending "Including housing loans for which an impairment provision exists based on delinquency depth, for which no impairment provision exists based on delinquency depth" with "Including housing loans for which an impairment provision exists based on delinquency depth, for which no impairment provision exists based on delinquency depth, more than 90 days";

The references in the Annex have been updated accordingly.

The amendments to this Instruction take effect as of December 31, 2012.

Questions and Clarifications

For questions or clarifications regarding the tables in Reporting Instruction No. 803, please contact the Reporting Supervision department.

File Update

The following pages in the "Reporting Instructions" file have been updated for the Banking Supervision Department:

Page to Insert | Page to Remove (1/13) [74] 803-1 | (8/12) [73] 803-1 (1/13) [77] 803-2 | (8/12) [76] 803-2 (1/13) [5] 803-3 | (8/12) [4] 803-3 (1/13) [3] 834-1 | (12/10) [2] 834-1 (1/13) [4] 834-2 | (9/11) [3] 834-2 *(8/12) [4] 897-51 | (8/12) [4] 897-51 (1/13) [3] 897-52 | (11/12) [2] 897-52

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

Respectfully,

Orr Sofer Deputy Superintendent of Banks

Reports Applicable to All Banking Institutions, Credit Card Companies

Reports Applicable to All Banking Institutions, Credit Card Companies

Banking Supervision Department The files are located in the safe at the Bank of Israel. The file name changes according to the latest version of the report, with the letter "X" replaced by the file number.

Page 803-1

Banking Supervision Department

Page 803-2

Banking Supervision Department

Page 803-3

Banking Supervision Department

Name | Phone | Fax | Email Dganit Harel | 02-6669121 | 02-6552472 | dganit.harel@boi.org.il Varda Mor | 02-6669439 | 02-6552439 | varda.mor@boi.org.il Zehava Haas | 02-6669432 | 02-6552432 | zehava.haas@boi.org.il Ifat Segv | 02-6669437 | 02-6552437 | ifat.segev@boi.org.il Moti Weiss | 02-6669480 | 02-6552480 | moti.weiss@boi.org.il Nissim Drori | 02-6669444 | 02-6552444 | nisim.drori@boi.org.il Shaul Pearl | 02-6669455 | 02-6552455 | shaul.pearl@boi.org.il Shlomo Yamini | 02-6669459 | 02-6552459 | shlomo.yemini@boi.org.il Tanya Koriat | 02-6669427 | 02-6552415 | tanya.koriat@boi.org.il

Page 834-1

Reporting Instruction No. 834 – Exposure to Foreign Countries (Quarterly)

This Instruction applies to all banking institutions, except for joint venture companies with foreign banks.

a. The report is prepared on a consolidated basis.

The report must be submitted within four business days from the date of publication of the Annual or Quarterly Financial Report.
The report consists of Annex 01 (Consolidated – Exposure to Foreign Countries).
Reporting must be done via computer communication technology, using the internet, to the format attached hereto. Israel.
Any term in this Instruction shall have the meaning given to it in the Reporting Instructions for the Public, as defined in Section 2(z), unless otherwise stated.
"Problematic Credit Risk" shall have the meaning given to it in the Reporting Instructions for the Public.
"Impaired Debts" shall have the meaning given to it in the Reporting Instructions for the Public.
The report shall include, separately for each foreign country, the total amount of all off-balance sheet and on-balance sheet exposures, after accounting write-offs, before the effect of impairment provisions for credit losses, before the effect of collateral permissible for deduction for the borrower's and the borrower group's liabilities, exceeding 50 thousand NIS.
Report using the codes specified in Annex A to Reporting Instruction No. 833:

a. Row 02 - "Country Code" - according to Reporting Instruction No. 833 "Banking Institution Exposure to Foreign Financial Institutions";

b. Row 03 - "Country Classification". If the country is classified as "Less Developed Country (LDC)", mark code 1; otherwise, mark code 2.

c. Row 04 - "Country with Liquidity Problems". If the country is classified as such, mark code 1; otherwise, mark code 2.

d. Row 05 - "Current Country Rating". Indicate the rating of the rating agency used. For the purpose of applying Reporting Instruction No. 203 "Banking Management – Capital Adequacy Measurement - Standard Approach - Credit Risk".

Page 834-2

Annex 01 – Consolidated – Exposure to Foreign Countries

Country A | Country B 01 02 03 04 "Countries with Liquidity Problems" 05 3 Governments 06 07 Banks 08 Others 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Maturity up to 1 year 24 Maturity over 1 year

(1) Final risk basis, after the effect of eligible collateral, guarantees, and liquid derivatives. (2) After accounting write-offs, before the effect of impairment provisions for credit losses, before the effect of collateral permissible for deduction for the borrower's and the borrower group's liabilities. (3) Governments, official institutions, and central banks. (4) Credit risk in off-balance sheet financial instruments calculated as per balance sheet exposure limits. (5) Impaired credit risk, substandard or special supervision, including housing loans for which an impairment provision exists based on delinquency depth, for which no impairment provision exists based on delinquency depth, more than 90 days.

Exposure On-Balance Sheet Country Name Country Code Country Classification Current Country Rating (LDC) "Less Developed Countries" Impaired Debts: Indicate

Specific Basis Net Balance After Deductions for Local Liabilities

2 On-Balance Sheet Exposure Exceeding Limit 2 On-Balance Sheet Exposure Institution's Branches Foreign Country Bank Local Residents Before Deduction of Local Liabilities

(9-10=11) Net After Deduction (6+7+8+11=12) Total 2 On-Balance Sheet Exposure

5 Problematic On-Balance Sheet Credit Risk: Indicate

(12-15=16) Total On-Balance Sheet Exposure After Deductions for Specific Basis Impairment Provisions for Credit Losses

Specific Basis Impairment Provisions for Credit Losses Balance

4 Off-Balance Sheet Exposure 2 On-Balance Sheet Exposure Exceeding Limit 2 On-Balance Sheet Exposure Total

5 Problematic On-Balance Sheet Foreign Credit Risk: Indicate

Specific Basis Impairment Provisions for Credit Losses Balance Attributed to Off-Balance Sheet Credit Risk

(18-20=21) Total Off-Balance Sheet Exposure After Deductions for Specific Basis Impairment Provisions for Credit Losses

Specific Basis Impairment Provisions for Credit Losses Balance

Page 897-52

Annex G - Update Key

Page to Insert | Page to Remove | Subject | Circular No. | Date *(9/11) [11] 877-6-7 | (9/11) [11] 877-6-7 | Reporting Instructions | 2345 | 30.08.2012 (8/12] [12] 877-8) | 9/11] [11] [877-8 | (Continuation) (Reporting Supervision) | Various Versions | 887-1-5 (8/12) [4] 897-51 | (5/12) [3] 897-51 | (8/12) [1] 897-52 | --------------------- | (11/12) [10] 876-1 | (8/12) [9] 876-1 | Housing Loans | 876 | 2350 | 27.11.2012 *(8/12) [9] 876-2 | (8/12) [9] 876-2 | *(8/12) [9] 876-3 | (8/12) [9] 876-3 | (11/12) [10] 876-4-6 | (8/12) [9] 876-4-6 | *(8/12) [9] 876-13 | (8/12) [9] 876-13 | (11/12) [1] 876-14 | ------------------ | *(8/12) [4] 897-51 | (8/12) [4] 897-51 | (11/12) [2] 897-52 | (8/12) [1] 897-52 | (1/13) [74] 803-1 | (8/12) [73] 803-1 | Exposure to Countries | 834 | 2360 | 02.01.2013 (1/13) [77] 803-2 | (8/12) [76] 803-2 | Foreign (1/13) [5] 803-3 | (8/12) [4] 803-3 | (1/13) [3] 834-1 | (12/10) [2] 834-1 | (1/13) [4] 834-2 | (9/11) [3] 834-2 | *(8/12) [4] 897-51 | (8/12) [4] 897-51 | (1/13) [3] 897-52 | (11/12) [2] 897-52 |

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