Banking Supervision Extends Relief Measures Amidst Ongoing Conflict in Gaza

In response to the evolving situation and the recent announcement by the Bank of Israel, the Banking Supervision has declared an extension of the temporary order, Proper Banking Management 251, with additional concessions in the credit sector. This decision, made public on Monday evening, aims to ease the financial burden on the public during these challenging times.

As part of the updated Proper Banking Management Order 251, a temporary order, the Supervision of Banks has released a draft for public consultation outlining supplementary measures. These measures are designed to facilitate the public's navigation through the current circumstances within the framework of the ongoing temporary order dedicated to addressing the challenges arising from the conflict.

In light of the continued conflict, the supervision of banks has prolonged the validity of the temporary order, Proper Banking Management 251, until March 31, 2024. Among the key provisions is an exemption from regulatory restrictions, including the financing rate and return on income ratio, for credit amounts up to NIS 200,000 designated for the construction of MMD. The expedited construction permit for MMD has been granted by the Home Front Command and the Director of Planning in response to the war.

Additionally, individuals seeking credit with a mortgage on a residential apartment will benefit from an increased maximum financing rate in these loans. This rate has been raised from 50% to 70% of the property's value, with the condition that the loan amount above the 50% financing rate does not exceed NIS 200,000.

These relief measures underscore the Banking Supervision's commitment to supporting the public during these challenging times, providing financial flexibility and addressing the unique circumstances arising from the ongoing conflict. The draft for public consultation invites input from various stakeholders as the authorities work towards effective and responsive financial management in the midst of the current situation.