Regulatory Alerts2018-04-16
Added
Limitations on Issuing Housing Loans
The Supervisor of Banks amends the Proper Conduct of Banking Business Directive to update the definition of a reduced price dwelling to include homes purchased under programs such as the Buyer’s Price program. The directive establishes specific valuation rules for these dwellings, capping the property value at NIS 1.8 million if the assessor’s evaluation exceeds that amount, and mandates minimum own-fund contributions of NIS 60,000 or NIS 100,000 depending on the home type. Banking corporations must also ensure their collective allowance for credit loss on housing loans is no smaller than 0.35 percent of the loan balance.