Regulatory Alerts2019-05-07
Control over Issuing of Guarantees by a Banking Corporation
The Bank of Israel amended Proper Conduct of Banking Business Directive no. 353 to permit banking corporations to issue guarantees on digital media rather than exclusively on paper. The updated directive requires banks to implement robust processes for managing credit and operational risks, including specific controls for information security, cyber threats, and privacy protection inherent in digital transactions. These regulatory changes took effect immediately upon the publication of the circular on the Bank of Israel’s website.
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