In view of the impact of the COVID-19 crisis on the assets of the banking corporations and the continued increase in banking corporations’ deposits at the Bank of Israel, the wearing down of the banking system’s leverage ratio has continued in recent quarters.


In response to the needs of the economy and in order to support the continued recovery of the economy, the Banking Supervision Department is extending the validity of the leniency established in the Temporary Provision (Proper Conduct of Banking Business Directive no. 250), which established a decrease of half a percentage point in the leverage ratio, until December 31, 2023. After that date, the banking corporations will be required to return, within 2 quarters, to the leverage ratios that were required before the temporary provision.