Regulatory Alerts2026-06-17
Added · Updated
Pledging Assets of a Banking Corporation
The directive establishes requirements for the sound management of pledged assets by banking corporations, excluding foreign banks and joint services companies. It prohibits pledging assets unless required by law, regulation, or market practice, and mandates that the level of pledged assets does not significantly reduce the ability to raise additional funding. The board of directors must approve a policy on pledged assets, while management implements it and risk management functions verify associated risks. For covered bonds, the directive sets a quantitative limit where pledged assets cannot exceed 2 percent of total assets, requires issuance outside Israel in foreign currency, and mandates the establishment of a special purpose vehicle.
More like this from BOI
We email you every new BOI publication the day it's published.