Israel: Detailed Assessment of Observance of Basel Core Principles for Effective Banking SupervisionA detailed assessment of Israel’s compliance with the Basel Core Principles for effective banking supervision is presented. The Bachar reform that has been started in mid-2005 forced banks to divest most noncommercial banking activities, such as mutual funds, insurance, pension, and provident funds; the banks today focus on traditional banking business. As a result, the nonbank financial sector has grown rapidly, playing a larger role in credit markets. Financial supervision responsibilities in Israel are shared among several agencies. The Bank of Israel and specifically its Banking Supervision Department supervises banks. |
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annual approach approval areas assessors assets audrt authorities bank's banking book banking corporation Banking Ordinance banking supervision banking system bankmg banlung Basel Core Principles Basel II capital adequacy companies Companies Law confirms currency debts define disclosure drectrves EC-l ensure examinations exposures external auditors financial financial sector funds GAAP governance ICMP IFRS Imam implementation interest-rate risk Internal Audit International Monetary Fund Israel Israel Securities Authority Israeli banks issue largely compliant legal framework liquidity risk loan lrom lrorn Manual market risk measures methodology models momma mung non-bank nslt management nstt off-site ol the bank on-site operational risk oversight pohcy policies powers processes Pubic recommendations reflect regulation regulatory relevant requires risk management rrsk specific SREP standards strategy Suoervrsor Supemsor Supervisor updated wlth wrth