General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
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

Related Insights

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News

FASB Issues Q&A on Estimating Credit Loss Reserves

FASB issued a question-and-answer (Q&A) document that addresses particular issues related to the weighted average remaining maturity (WARM) method for estimating the allowance for credit losses.

January 10, 2019 WebPage Regulatory News

FED Updates Reporting and Supplemental Instructions for Form FR Y-9C

FED published the updated reporting instructions and supplemental instructions for the FR Y-9C reporting form. The reporting frequency for FR Y-9C is quarterly, as of the last calendar day of the quarter.

January 09, 2019 WebPage Regulatory News

PRA Updates Policy on Liquidity Reporting Under FSA047/048 and PRA110

PRA published the policy statement PS1/19 that provides feedback to responses to the consultation paper CP22/18 titled "Liquidity reporting: FSA047 and FSA048" and the proposal in CP16/18, which intended to correct the level of consolidation of the PRA110 reporting requirements.

January 08, 2019 WebPage Regulatory News

FED Proposes to Amend Company-Run Stress Testing Requirements

FED proposed to modify company-run stress testing requirements to conform with the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

January 08, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2468