The Banking Supervision Department acts to extend the validity of the temporary provision through December 31, 2021, and updates its policy regarding dividends

The Banking Supervision Department has decided to extend the validity and to update the temporary provision regarding the COVID-19 crisis by an additional 3 months, until December 31, 2021.

 

In addition, further to the press release published on July 15, 2021[1], the Banking Supervision Department clarifies that in view of the increasing  trend of recovery from the COVID-19 crisis, and in view of the soundness of the banks in Israel that enables them to support economic activity, banks may recommence deliberating the distribution of dividends based on a prudent and conservative approach that takes into account the level of uncertainty regarding the continuation of the COVID-19 crisis and its future economic implications. The Banking Supervision Department considers that making a distribution of an amount exceeding 30 percent of the bank’s profits in 2020 and in 2021 would not be considered prudent and conservative capital setting.

 

The first notice on this matter, published on March 29, 2020, is available at:

https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/29-3-2020a12.aspx 


The second notice, published on March 7, 2021, is available at:

http://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/7-3-21.aspx  

 

The third notice, published on July 15, 2021, is available at:

https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/15-7-21.aspx