Fees for Banking Services

Bank of Israel Supervision and Regulation Department Policy

Fax: 02-6524590 Tel: 02-6552475 P.O.B. 780, Jerusalem 91007 Jerusalem, 2 Shevat 5774 January 05, 2014

Circular No. 2406-06

To: Banking Institutions and Credit Card Companies

Subject: Fees for Banking Services (Directive No. 828, Supervision and Regulation of Banks)

Introduction Following the publication of the amendment to the "General Banking Services to Customer (Fees) Publication" (2012-3 G.I.), this directive is hereby amended.

The amendments to the directive are as follows:

Directive No. 828 – Quarterly Report on Fees for Banking Services

Changes in Table 01:

1. Row 01-02: The fee code "1.1.1 Small Business Account Management Fee" shall be deleted.
2. Row 10-11: The fee codes "1.5.1 Card Information Fee" and "1.6.1 Card Cash Withdrawal Fee" shall be deleted.

Changes in Table 02:

1. Row 03: The fee code "3.2.1" shall change to read: "Credit Processing with Collateral" and shall henceforth apply to "Loans other than mortgages exceeding NIS 100,000."
2. Row 05: A new row (06) shall be added after row 05. Fee code: 3.2.4 Fee name: "Credit Processing with Collateral – Check Discounting exceeding NIS 50,000" (New numbering: 39-07 shall henceforth be the old numbering).
3. After row 03, a new row 22 shall be added: "Alignment between the 'Bank Base' Profit and Loss Statement and the Fees Tariff."
4. In Table 04, row 23: The fee code "3.2.1" shall change to read: "Credit Processing with Collateral" and shall henceforth apply to "Loans other than mortgages exceeding NIS 100,000."

Commencement These amendments to the directive shall commence on the date of their publication.

Inquiries and Questions Regarding the tables in Directive No. 803 (Supervision and Regulation of Banks), please contact the Reporting Unit directly for inquiries and questions.

File Updates The following pages of the "Reporting Directives for Banks" file have been updated according to the instructions below:

Page to Insert | Page to Remove (1/14) [3] 828-1-2 | (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 *This page was reprinted but not updated, following the transition to double-sided printing.

With respect, Or Soffer Deputy Superintendent of Banks

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Supervision and Regulation of Banks Directive No. 828-1: Fees for Banking Services

1. Scope This directive applies to banks (excluding foreign banks), solely on a consolidated basis (referring to the bank's activities in its offices in Israel).

2. Definitions In this directive, unless otherwise stated: (a) "General Banking" – as defined in "General Banking Services to Customer (Fees)" (2008-3 G.I.). (b) "Small Business" – as defined in "General Banking". (c) "Tariff" – the "Full Tariff" as defined in "General Banking". (d) "Account Compensation" – as defined in Section 415(2)(g) of the Banking (Service to Customer) Directive, 5741-1981. (e) "Customer Club" – a group of customers entitled to benefits within the framework of a specific agreement, including benefits offered to the entire population or to specific segments of the population, as determined by the bank.

3. Reporting Deadline The report shall be submitted no later than four business days after the reporting period, whether annual or quarterly.

4. Reporting Tables (a) Table 01: Fee Income – Number of Operations and Accounts (NIS Million) – Parts 1-2 of the Tariff (and NIS Thousand). (b) Table 02: Fee Income – Number of Operations and Accounts (NIS Million) – Parts 3-4 of the Tariff (and NIS Thousand). (c) Table 03: Fee Income – Number of Operations and Accounts (NIS Million) – Parts 5-11 of the Tariff (and NIS Thousand), except for Part 6 of the Tariff which applies to non-banking institutions; and alignment with the "Bank Base" Profit and Loss Statement on Fees. (d) Table 04: Bank Fee Income – Number of Operations and Accounts by Population Groups (NIS Million). (e) Table 05: Number of Accounts – "Small Business". (f) Table 06: Distribution of Individual and Small Business Accounts by Account Type (NIS Million). (g) Table 07: Breakdown of Teller Operations and Direct Channel Operations by Activity Type (NIS Million).

5. Additional Detail for Table 04 A letter shall be sent detailing the composition of the bank's largest Customer Club.

6. Reporting Method The reports pursuant to Section 4 shall be submitted via computer communication technology, including the internet, using the secure format used by the Bank of Israel.

7. Submission of Reports The reports pursuant to Section 5 shall be submitted to the Supervision and Regulation of Banks Unit within the first reporting period after the first submission of this directive, and thereafter whenever there are changes in any details.

8. Reporting Tables (a) Tables shall be reported on all fees collected from individuals, small businesses, and small enterprises. (b) In the row for "Full Fee" (Fee Code 1.1.2), only the income from the full fee shall be included, and the total income from the full fee (not the minimum fee) shall be stated, along with the number of charged operations. (c) In the row for "Individual – Credit Allocation" (Fee Code 3.1.1), only the income from the credit allocation fee shall be included. If the bank collected a partial credit allocation fee from customers who did not utilize the entire credit limit during the quarter, or if the bank collected a credit allocation fee from customers who utilized part of the credit limit, only the income from the lower amount of the credit allocation fee shall be included. The income from the full fee shall not be included in the amount of interest paid. Example: If interest of NIS 9 was actually paid, and a fee of NIS 3 was collected as a full credit allocation fee for the quarter, this amount shall be included. If the customer paid interest exceeding NIS 12, the income for this section shall be zero, as the credit was not fully utilized. If the customer paid interest of NIS 12, the income for this section shall be zero, as the credit was not fully utilized. (d) These tables shall include data regarding accounts in foreign currency and in Israeli currency. (e) The balance in the row "Total Fees" in Table 03 shall correspond to "Total Fees" in the "Bank Base" Profit and Loss Statement.

9. Reporting Tables (a) The column "Customer Club" shall detail the fee income from the bank's largest Customer Club, in terms of the number of customers. (b) The notes in Section 8(b)-(c) shall also apply to Table 04. (c) This table shall include data regarding accounts in Israeli currency only.

Table 01 Fee Income – Number of Operations and Accounts (Parts 1-2 of the Tariff) (NIS Thousand)

Fee Code | Fee Name | 01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 1.1.2 | Full Fee - NIS | 01 | 1.1.2 | Full Fee - NIS | 02 | 1.2.1 | Teller Operation - NIS | 03 | 1.2.1 | Teller Operation - NIS | 04 | 1.3.1 | Direct Channel Operation - NIS | 05 | 1.3.1 | Direct Channel Operation - NIS | 06 | 1.4 | Checkbook | 07 | 1.7.1 | Banker's Check | 08 | 1.8.1 | Cash Handling - Teller - NIS | 09 | 1.8.2 | Cash Handling - Teller - NIS | 10 | 1.9.1 | Return Charge due to Insufficient Cover | 11 | 1.10.1 | Return Charge to Drawer for Technical Return of Check | 12 | 1.11.1 | Return Charge to Depositor for Check Return | 13 | 1.12.1 | Charge for Cancellation of Order | 14 | 1.13 | List Transfer | 15 | 1.14.1 | Fixed Daily Offset Orders | 16 | 1.15 | Deferred Check Processing | 17 | 1.16 | Return Charge to Payee vs. Authorization Charge | 18 | 1.17.1 | Transfer to Another Bank in the Real-Time Gross Settlement (RTGS) System | 19 | 20 | Total Part 1 | 2.1.1 | Notices | 21 | 2.2.1 | Lawyer's Letter of Notice | 22 | 2.3.1 | Printing or Production of Documents Available at Branch | 23 | 2.3.2 | Printing or Production of Documents Not Available at Branch | 24 | 2.4.1 | Standard Reports - Reports at Customer Request | 25 | 2.4.2 | Reports Involving Information Collection - Reports at Customer Request | 26 | 2.5.1 | Document Search | 27 | 2.6.1 | Account Search | 28 | 2.7 | Receipt of Information via Communication at Customer Request | 29 | 2.8 | Information on Electronic or Magnetic Media | 30 | 2.9.1 | Production and Sending of Transaction Sheets at Special Frequency at Customer Request | 31 | 2.10 | Direct Access to Bank Computer | 32 | 33 | Total Part 2 |

Income

Directive No. 828-4: Fees for Banking Services (Reporting Directives for Banks) [2/14]

Fees for Banking Services (Quarterly) Total | Private Banking - Individuals and Others | Household - Individuals Income

Table 02 Fee Income – Number of Operations and Accounts (Parts 3-4 of the Tariff) (NIS Thousand)

Fee Code | Fee Name | 01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 3.1.1 | Individual - Credit Allocation | 01 | 3.1.2 | Small Business - Credit Allocation | 02 | 3.2.1 | Credit Processing with Collateral - Non-Mortgage Loans Exceeding NIS 100,000 | 03 | 3.2.2 | Credit Processing with Collateral - Mortgage Loans | 04 | 3.2.3 | Credit Processing with Collateral - Small Business Credit Lines | 05 | 3.2.4 | Credit Processing with Collateral - Check Discounting Exceeding NIS 50,000 | 06 | 3.3.1 | Mortgage Loan Management Fee | 07 | 3.4.1 | Collection Fee for Non-Mortgage Loans Given Before the Application of the Rules | 08 | 3.5.1 | Bank Guarantee (Except for Type Covered by the Guarantee Law) | 09 | 3.5.2 | Guarantee for Earners According to the Guarantee Law | 10 | 3.6.1 | Guarantee Conversion According to the Guarantee Law | 11 | 3.7.1 | Registration of Encumbrances via Bank Representative with the Registrar | 12 | 3.8.1 | Change of Encumbrances at the Bank | 13 | 3.8.2 | Change of Encumbrances with the Registrar | 14 | 3.9.1 | Consent to Create Encumbrance with Another Bank | 15 | 3.10.1 | Changes in the Loan Agreement or Conditions at the Request of Guarantor or Customer | 16 | 3.10.2 | Changes in Repayment Date of Mortgage Loan According to Banking Law (Amendment) (Services to Customer) 5741-1981 | 17 | 3.11.1 | Mortgage Loan Roll-over | 18 | 3.11.2 | Grant Roll-over | 19 | 3.11.3 | Interim Deposit or Guarantee | 20 | 3.12.1 | Issuance or Renewal of Entitlement Certificate | 21 | 3.13.1 | Early Repayment | 22 | 3.14.1 | Financial Advisory | 23 | 24 | Total Part 3 | 4.1 | Shares - Purchase, Sale, and Redemption | 25 | 4.2.1 | Options - Purchase, Sale, and Writing | 26 | 4.3 | Futures Contracts - Purchase, Sale, and Writing | 27 | 4.4 | Bonds and Options - Purchase, Sale, and Writing | 28 | 4.5.1 | Management Fee for Securities Traded in Israel | 29 | 4.5.2 | Management Fee for Securities Traded Abroad | 30 | 4.5.3 | Management Fee for Securities Not Traded on an Exchange | 31 | 4.6.1 | Transfer of Securities to Another Account at the Same Bank | 32 | 4.6.2 | Transfer of Securities to Another Customer's Account | 33 | 4.7 | Conversion of Bonds to Shares and Conversion of Shares to Bonds, and Exercise of Warrants | 34 | 4.8 | Processing of Securities Order in Issuance | 35 | 4.9 | Distribution Fee | 36 | 4.10 | Lending of Securities for Short Sale | 37 | 4.11.1 | Custodian Fee | 38 | 39 | Total Part 4 |

Income

Directive No. 828-5: Fees for Banking Services (Reporting Directives for Banks) [2/14]

Fees for Banking Services (Quarterly) Fee Total | Private Banking - Individuals and Others | Household - Individuals Income

Table 03 Fee Income – Number of Operations and Accounts (Parts 5-11 of the Tariff) (NIS Thousand)

Fee Code | Fee Name | 01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 5.1 | Exchange Fee | 01 | 5.2.1 | Cash Deposit to Foreign Currency Account | 02 | 5.2.2 | Cash Withdrawal from Foreign Currency Account | 03 | 5.3.1 | Cash Exchange (Replacement of Damaged or Old Notes, or Exchange Without Rates) | 04 | 5.4.1 | Collection of Foreign Currency Checks | 05 | 5.5.1 | Deposit of Check or Traveler's Check, or Redemption of Check | 06 | 5.6.1 | Sale of Traveler's Checks | 07 | 5.7.1 | Banker's Check | 08 | 5.8 | Processing of Check Drawn on NIS Account for Collection and Presentation | 09 | 5.9.1 | NIS to Foreign Currency Transfer - One-Time | 10 | 5.9.2 | NIS to Foreign Currency Transfer - Recurring | 11 | 5.10.1 | Customer | 12 | 5.10.2 | NIS Transfer from Another Bank in Israel to Another Bank in Israel | 13 | 5.11.1 | Value Day | 14 | 15 | Total Part 5 | 16 | Total Part 7 | 17 | Total Part 8 | 18 | Total Part 9 | 19 | Total Part 10 | 20 | Total Part 11 | 21 | Other | 22 | Total Fees in Tariff | 23 | Adjustment for Large Business Fees | 24 | Adjustment for Fees from Foreign Currency Activities | 25 | Adjustment for Credit Card Income and Profit/Loss | 26 | Less Credit Allocation Fee | 27 | Less Bank Guarantee Fee | 28 | Other Less/Plus | 29 | Total Fees on Bank Base Profit/Loss Statement (Quarterly) *Except for Part 6 of the Tariff which applies to non-banking institutions.

Directive No. 828-6: Fees for Banking Services (Reporting Directives for Banks) [3/14]

Fees for Banking Services (Quarterly) Total | Private Banking - Individuals | Household - Individuals

Table 04 Bank Fee Income – Number of Operations and Accounts by Population Groups (NIS Million) (NIS Thousand)

Fee Code | Fee Name | 01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13 | 14 1.1.1 | Small Business Account Management Fee | 01 | 1.1.2 | Full Fee - Minimum | 02 | 1.2.1 | Teller Operation | 03 | 1.3.1 | Direct Channel Operation | 04 | 1.4 | Checkbook | 05 | 1.5.1 | Card Information | 06 | 1.6.1 | Card Cash Withdrawal | 07 | 1.7.1 | Banker's Check | 08 | 1.8.1 | Cash Handling - Teller - NIS | 09 | 1.8.2 | Cash Handling - Teller - NIS | 10 | 1.9.1 | Return Charge due to Insufficient Cover | 11 | 1.10.1 | Return Charge to Drawer for Technical Return of Check | 12 | 1.11.1 | Return Charge to Depositor for Check Return | 13 | 1.12.1 | Charge for Cancellation of Order | 14 | 1.13 | List Transfers (Including Salary) | 15 | 1.14.1 | Fixed Daily Offset Order | 16 | 1.15 | Deferred Check Processing | 17 | 1.16 | Return Charge to Payee vs. Authorization Charge | 18 | 1.17.1 | Transfer to Another Bank in the Real-Time Gross Settlement (RTGS) System | 19 | 20 | Total from Part 1 | 21 | Total from Part 2 | 3.1.1 | Individual Credit Allocation | 22 | 3.2.1 | Credit Processing with Collateral - Non-Mortgage Loans Exceeding NIS 100,000 | 23 | 3.2.2 | Credit Processing with Collateral - Mortgage Loans | 24 | 3.3.1 | Mortgage Loan Management Fee | 25 | 26 | Other Part 3 | 27 | Total from Part 3 | 4.1.1 | Purchase, Sale, and Redemption of Securities | 28 | 4.5.1 | Securities Management Fee | 29 | 30 | Other Part 4 | 31 | Total from Part 4 | 5.1 | Exchange Fee | 32 | 5.2 | Cash Withdrawal or Cash Deposit to Foreign Currency Account / Foreign Currency Withdrawal from Account | 33 | 34 | Other Part 5 | 35 | Total from Part 5 | 36 | Number of Accounts

Directive No. 828-7: Fees for Banking Services (Reporting Directives for Banks) [3/14]

Fees for Banking Services (Quarterly) Total | Other Customers | Young Customers | Students | Soldiers | Small Business | Individual Income

Appendix G to Directive No. 897-54: Updates Index

Directive No. | Date | Subject | Page to Remove | Page to Insert 810D-1 | 21.7.2013 | Reporting Directives | (12/11) [6] 810D-1 | *(12/11) [6] 810D-1 810D-2-3 | | (Continuation of Reporting Directives) | (12/11) [6] 810D-2-3 | (7/13) [7] 810D-2-3 810D-4 | | | (12/11) [6] 810D-4 | *(12/11) [6] 810D-4 810D-11 | | | (12/11) [6] 810D-11 | (7/13) [3] 810D-11 810D-12 | | | (12/11) [6] 810D-12 | *(12/11) [6] 810D-12 830-1-3 | | | (2/12) [2] 830-1-3 | (7/13) [3] 830-1-3 832-5-8 | | | (3/13) [15] 832-5-8 | (7/13) [16] 832-5-8 832-13 | | | (3/13) [15] 832-13 | *(3/13) [15] 832-13 832-14 | | | (3/13) [15] 832-14 | #(3/13) [15] 832-14 876-11-12 | | | (8/12) [9] 876-11-12 | (7/13) [10] 876-11-12 897-53 | | | (4/13) [3] 897-53 | (7/13) [4] 897-53 897-54 | | | ------------------ | (7/13) [1] 801-1 | 30.7.2013 | Emergency Reporting | *(7/13) [17] 801-1 | *(7/13) [17] 801-1 801-2 | | | (9/11) [9] 801-2 | (7/13) [10] 801-2 801-3 | | | (9/11) [39] 801-3 | *(9/11) [39] 801-3 801-4 | | | (7/13) [51] 801-4 | (7/13) [52] 801-4 803-1 | | | (1/13) [74] 803-1 | (7/13) [75] 803-1 803-2 | | | (7/13) [78] 803-2 | (7/13) [79] 803-2 889-1-11 | | | ------------------ | (7/13) [1] 889-1-11 897-53 | | | (7/13) [4] 897-53 | *(7/13) [4] 897-53 897-54 | | | (7/13) [1] 897-54 | (7/13) [2] 897-54 838-1-23 | 13.11.2013 | Various Versions of Reporting Directives | (11/13) [4] 838-1-23 | (11/13) [3] 838-1-24 897-53 | | | (7/13) [4] 897-53 | *(7/13) [4] 897-53 897-54 | | | (7/13) [2] 897-54 | (11/13) [3] 897-54 828 | 05.01.2014 | Fees for Banking Services | (1/14) [3] 828-1-2 | 2406 828-1-2 | | | (10/10) [2] 828-1-2 | 828-4-5 | | | (2/10) [1] 828-4-5 | 828-6-7 | | | (10/10) [2] 828-6-7 | 897-53 | | | (7/13) [4] 897-53 | *(7/13) [4] 897-53 897-54 | | | (11/13) [3] 897-54 | (1/14) [4] 897-54 *This page was reprinted but not updated, following the transition to double-sided printing. #Technical Correction