Regulatory Alerts2013-02-01
Added
Update to the Format of Publishing the Interest Rate Offered on Housing Loans in the Unindexed Shekel Segment
The Bank of Israel replaces the current publication of average fixed interest rates on housing loans in the unindexed shekel segment with a new format effective April 10, 2013. The new format displays only the general average percentage of fixed rates, excludes variable rates and index-linked rates, and removes the breakdown by repayment periods. Financial institutions must update their data presentation for calculating repayment fees to align with these changes by the first publication date in March 2013.
02-6552631 :Fax 02-6552680 :Phone 91007 Jerusalem 780 P.O.B.
Bank of Israel Supervision of Banks
"G Tevet 1" 1 January 01, 2013 06- - 'Ch No. 2361
To: Banking Institutions
Subject: Update to the Format of Publishing the Average Interest Rate on Housing Loans in the Unindexed Shekel Segment
Effective from 10.4.2013, the Bank of Israel will replace the current publication on its website with a new publication of data on the fixed average interest rate on housing loans, as defined in Banking (Management) Directive No. 451, in the unindexed shekel segment.
This publication will change the manner of presentation of the data used for calculating the repayment fee, as detailed below:
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The current publication displays only the general average percentage of fixed interest rate data. The new format will display, in a similar manner to the segment, the average percentages of both variable and fixed interest rates (index-linked).
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The current publication does not display a breakdown by repayment periods in the new format. The following periods will be published: "More than 1 year up to 2 years"; "More than 2 years up to 5 years"; "More than 5 years up to 10 years"; "More than 10 years up to 15 years"; "More than 15 years up to 20 years"; "More than 20 years up to 25 years"; "More than 25 years".
The first publication date of the average interest rate on housing loans in the unindexed shekel segment will be, as stated, on 10.4.2013, in the new format. From this date onwards, interest rate percentages will be published in this format with a monthly frequency in the month of March 2013.
Banking institutions are required to prepare, by the date of the first publication, the data used for calculating the repayment fee, in accordance with the aforementioned changes.
With respect,
David Zik Supervisor of Banks
- The data is based on Directive No. 877 on Reporting to the Supervision of Banks.
- The date of the interest rate change is not known – includes interest on credit – up to 1 year
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