Proper Conduct of Banking Business Directive 203 Update

The translation is intended solely for the convenience of the reader. Only the Hebrew text is binding. Banking Supervision Department Jerusalem, May 22, 2022 Circular Number C-06-2722 Attn: Banking corporations and credit card companies Re: Proper Conduct of Banking Business Directive 203 (Measurement and Capital Adequacy – The Standardized Approach – Credit Risk) Introduction

1. In the update to the Directive based on Circular C-06-2683, from December 26, 2021, a reference
   was left out in Appendix C, Section 104.
2. After consulting with the Advisory Committee on Banking Business Affairs and with the
   approval of the Governor, I have amended Proper Conduct of Banking Business Directives 203. Main provisions of the update
3. Update to Section 104 in Appendix C:
   In the second bullet of the section, a reference to Section 65a was added. Commencement
4. These updates to the Directive shall go into effect on the date this Circular is published.
5. File update
   Update pages for the Proper Conduct of Banking Business Directives file are attached. The following are the update instructions:
   Remove page Insert page
   (5/22) [14] 203-1-62 (08/22) [15] 203-1-62
   Respectfully,
   Yair Avidan
   Supervisor of Banks