The Bank of Israel publishes guidelines for carrying out the Regulation Principles Law
Supervisor of Banks Yair Avidan said, “Regulation is a central foundation in the Banking Supervision Department’s activity, and we view the Regulation Principles Law an opportunity to refine and improve processes. The Law emphasizes the importance of cost-benefit analysis of regulation, collaboration with the public, and transparency in processes of regulation. These pillars are part of the existing regulation process in supervision, but they have been strengthened due to the Law, and we intend to continue to do so, through a continued learning process.”
Supervisor of Credit Data Sharing Eyal Hadad said, “We in the Credit Data System see great importance in improving the work and regulation processes, and in particular to protect the interests and privacy of households in Israel and in order to verify that the data reported to the system are reliable and refined. Regulation processes that are professional and transparent to the public are at the forefront of our considerations and we strive for constant improvement in our work. I am of the view that the work of regulation will be better due to this Law.”
The Regulation Principles Law, 5782-2021 (hereinafter, “the Law”), which will go into effect on January 1, 2023, applies to the Bank of Israel as a public corporation regarding the implementation of its powers in all that is related to regulating the areas of banking, acquirers, and credit data sharing. The goal of this Law is to promote the best regulation of government functions and public corporations, which is intended to achieve a clear and goal that is anchored in the regulator’s authorities, and to serve as a high-quality regulation that does not impose an excess regulatory burden.
As part of enhancing the transparency of the Bank of Israel’s activity, the Bank is publishing the guidelines it set regarding the manner of executing a report in setting regulation, which serves as a central pillar in the Law’s requirements. The guidelines encompass the guidelines of the Banking Supervision Department regarding regulation in the areas of banking and merchant acquiring, and the guidelines of the Credit Data System regarding credit data sharing.
The guidelines anchor main parts of the regulation process that will be reflected in the report on establishing the regulation, including a response to the questions of what the regulation intended for, who are the entities impacted by it, is it based on regulation abroad, what alternatives were considered, what are the expected effects of the alternative chosen, and how was there collaboration with stakeholders and the public in the regulation process.
The Bank of Israel attributes great importance to processes of regulation that are professional and transparent to the public, and has been getting ready since the legislation of the Law to comply with all the obligations imposed on it, and included in this it reexamined and refined its regulation processes.
To download a documents with the Banking Supervision Department’s guidelines (in Hebrew) click here
To download a documents with guidelines regarding related to Credit Data Sharing (in Hebrew) click here