Regulatory Alerts2017-07-10
Added
Industry indebtedness limitation
The Bank of Israel amends Proper Conduct of Banking Business Directives No. 315 and No. 314 to establish a per-industry indebtedness limitation for banking corporations and credit card companies. Under the revised Directive No. 315, total indebtedness to a specific industry may not exceed 20 percent of the total indebtedness to the public, with a maximum threshold of 22 percent in certain cases, replacing the previous supplemental and general provision mechanisms. Banking corporations must report any deviations from this limitation without delay and submit quarterly compliance reports to the Banking Supervision Department. Additionally, Directive No. 314 is updated to require that credit lacking updated financial statements be weighted when establishing allowances for credit losses. These amendments become effective on January 1, 2018.
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