Featured Product

    IMF Publishes Reports on the 2018 Article IV Consultation with Israel

    May 01, 2018

    IMF published its staff report and selected issues report after concluding the 2018 Article IV consultation with Israel. The IMF assessment points to a healthy banking system. The staff recommends that banking supervision should continue its efforts to operationalize a risk-focused approach. Financial regulators should harmonize regulations in areas of overlapping activity to avert regulatory arbitrage. Moreover, safeguarding the operational independence of financial regulators remains critical to their effectiveness.

    The staff report reveals that the banking system in the country is healthy. Capitalization, loan quality, and profitability continued to improve in 2017. The leverage ratio rose to 7.5%, which exceeds that in most advanced economies. All of the five large banks (accounting for 95% of banking sector assets) met the capital requirement, enabling them to resume or raise dividend payouts in 2017. The five largest banks account for 95% of the banking sector assets and, therefore, the authorities are taking a range of measures to promote competition in the sector. Entry of new banks would be welcome, with appropriate deposit insurance and resolution arrangements to contain fiscal costs from potential failure. Reinforcing the financial stability framework is critical to complement the progress being made on enhancing competition. Adoption of the Solvency II framework in 2017 by the Capital Market, Insurance, and Saving Authority (CMISA) is a welcome step, with the aim to achieve full compliance by the end of 2024.

    The authorities are also taking welcome steps to enhance the management of technological risks, including those from fintech, and improve Cyber Security. The Bank of Israel supports innovation in the banking system by streamlining the approval process for new products, while allowing for digital banks, cloud technology, and the sharing of IT and operational infrastructure. The Bank of Israel intends to step up the monitoring of risks that could emerge as fintech activities increase. Close coordination among regulators in relation to fintech may better facilitate fintech development and utilization. The Bank of Israel, in conjunction with the National Cyber Authority, the MoF, and banks, has established a Banking Cyber Center in 2017 to facilitate inter-agency sharing of intelligence about cyber alerts and help deal with cyber events that affect banks.

    The selected issues report analyzes the macro-fiscal implications of an increase in infrastructure spending and discusses the trends in inequality and poverty in Israel, while exploring policy measures to address these issues.

     

    Related Links

    Keywords: Middle East and Africa, Israel, Banking, Insurance, Financial Stability, Solvency II, Article IV, Fintech, IMF

    Featured Experts
    Related Articles
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    News

    BIS to Establish More Innovation Hubs in Europe and North America

    BIS announced that it will establish new Innovation Hub centers across Europe and in North America in cooperation with member central banks.

    June 30, 2020 WebPage Regulatory News
    News

    FED Updates Form FR 2052a for LCR Reporting by Banks

    FED updated the reporting form for FR 2052a, which is used to monitor the overall liquidity profile of certain supervised institutions.

    June 30, 2020 WebPage Regulatory News
    News

    PRA Statement on Changes to CRR in Response to COVID-19 Crisis

    PRA published a statement that sets out its views on certain amendments made to Capital Requirements Regulations (CRR and CRR2) via EU Regulation 2020/873 (CRR "Quick Fix"), including some guidance for firms.

    June 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Approach for Publishing Solvency II Technical Information

    PRA is proposing (CP5/20) an approach for publication of Solvency II technical information after the end of the transition period for Brexit.

    June 30, 2020 WebPage Regulatory News
    News

    FASB Announces Upgrade of SEC EDGAR System to Release 20.2

    FASB announced that SEC has upgraded the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system to Release 20.2.

    June 30, 2020 WebPage Regulatory News
    News

    CFRF Publishes Guide for Addressing Climate-Related Financial Risks

    The Climate Financial Risk Forum (CFRF), which is a joint climate risk forum of FCA and PRA, published a guide written by the industry for the industry to help firms approach and address climate-related financial risks.

    June 29, 2020 WebPage Regulatory News
    News

    IAIS Paper Provides Guidance on Liquidity Risk Management for Insurers

    IAIS published an application paper on liquidity risk management for insurers.

    June 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5414