Q&A In View of the Corona Virus
The banking system in Israel is a stable system and no danger is facing the banks or the
public’s funds deposited in them. The Banking Supervision Department (BSD)’s directives obligate banks to maintain monetary
reserves of capital to ensure their ongoing operations also in the event of an emergency.
Maintaining the banks’ stability on a routine basis enables the banking system to be resilient to
crises today. The banks have capital surpluses, high liquidity ratios and high quality credit
portfolio.
It is possible to withdraw cash from the ATMs at any time. The banks are making sure
that the ATMs are full with banknotes and are available for the execution of withdrawals or
deposits throughout the period. In order to ensure the continued provision of banknote
withdrawal services from ATMs, it was established that the banks, private ATM operators, and
money courier services are critical employees and thus the service continues without interruption
and there is no concern of a shortage of cash in the ATMs.
The Banking Supervision Department instructed the banks to provide an extended and personalized response to customers aged 70 and above, both at call centers and at core branches, in order to provide in-person services to customers who are unable to connect to direct digital channels.
There are banks that offer designated services for you (e.g., a designated call center or a mobile branch). We recommend checking directly with the bank to see which services it offers.
Bank customers who receive National Insurance allowances are entitled, as are all customers, to receive a basic means of payment, to include a cash withdrawal card and a debit card. The banking system dispatched debit cards to customers who receive an allowance, and who do not have a payment card and usually withdraw their allowances via the branch’s teller services. This can substantially reduce the need for withdrawing cash, since the debit card enables withdrawing cash, as well as making payments and purchasing products and services, similar to a credit card (though the customer’s account is debited for the amount of the transaction immediately).
Thus, in light of the Ministry of health’s updated guidelines on reducing traffic in public spaces, the customers will be able to use the debit card to conduct transactions remotly (via the telephone or the Internet), as required.
Hereunder please find the link to the press release on this matter:
https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/22-3-20.aspx
Furthermore, bank customers who receive an allowance from the National Insurance Institute are eligible to join “E-Banking,” which enables receiving information and conducting activities remotely, except in cases where the Bank has reasonable ground to refuse. We suggest that customers, who receive allowances, call the Bank and implement their rights in these matters.
The following is a link to the Bank of Israel’s website, “Worth knowing” on debit cards.
https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/30-6-19.aspx
The BSD is working a lot and will continue to work and use its authorities and the tools available to it in order to assist households and businesses to get through this challenging period.
Click here for a link to the Public Enquiries Unit Survey and steps to protect the customer that was published on October 14, 2020.
The State allocated guarantees of billions of shekels to help small businesses in the framework of a designated loans fund. The banks provide credit at their discretion and in accordance with the existing probability that the borrower will be able to repay the credit received after the crisis ends. In light of the fund being established, the banks have the option of giving more credit. The BSD suggests that you contact your bank, and verify the possibility of receiving assistance through this fund. Furthermore, regardless of the fund, the banks will be able to increase the credit line and even honor the charges and provide a new credit facility, due to the regulatory leniencies that the BSD provided.
In the event of encountering a difficulty in managing the account, it is very important to convey this to the bank so that it can examine whether to provide assistance in finding a solution, for example, more convenient deployment of the credit taken or deferral of payments.
It is at the bank’s discretion whether to authorize credit to the customer.
The decision whether to authorize credit is based upon the circumstances of each particular case and is subject to the bank’s assessment of the risks.
It is very important that you convey to the bank the difficulties you are encountering. To the extent these difficulties are related to the coronavirus crisis, the bank will be able to assist you in finding a solution, for example, more convenient deployment of the credit you took or affording payment deferrals. The banking system is aware of the difficulties its customers are encountering and with the encouragement of the Banking Supervision Department, is acting to help customers find suitable solutions. However, the decisions regarding the provision of credit and the assistance to businesses and households will be in accordance with the bank’s risk assessment in each case. With regard to the uniform framework for deferring loan payments—see Question 23.
It is very important to convey your difficulties to the bank and discuss with it options to help you in ways such as spreading out debits, deferring payments, increasing the credit facility, and more.
Proper Conduct of Banking Business Directive no. 450 on “Debt Collection Proceedings” establishes that during routine times as well, in a case in which customers encounter economic difficulties and find it difficult to meet their undertakings vis-à-vis the banking corporation, the banking corporation is to attempt to exhaust, as much as possible, different ways to collect the debt, including all its components, from the customer, before turning to the legal system. This is while maintaining the fairness and transparency throughout the debt collection process.
The above is all the more correct in these times, and therefore the banking corporations are required to continue and to act even more forcefully in this manner compared to routine times, with the goal of identifying difficulties and assisting their customers to endure the challenging period in which they are, at an early a stage as possible, in order to assist in preventing loans building up and their future deterioration.
In view of this, the Banking Supervision Department requested of the banking corporations to continue operating responsibly, displaying continued fairness, flexibility, and sensitivity to their customers, and to strengthen the function and place of the banking system as part of the social and economic fabric. Within the framework of these activities, it is very important to act in a focused manner to allocate the required resources in order to be available to customers and to reach agreements that are as optimal as possible with them, before taking legal proceedings.
One can accomplish this via the bank’s website, its app., and via the bank’s call-center. Call-centers are very busy these days, and waiting for them to answer may take time. Therefore, whosoever can receive an answer to their questions by digital means is welcome to do so.
It is very important to track what’s going on in one’s account, in order not to exceed, as far as is possible, one’s credit line. To the extent that an account is expected to be debited (by either check or authorized debit) in the case of insufficient funds, it is advisable to contact the billing entities to request payment deferral or to contact the bank and request a temporary or permanent credit-line increase. Checks that return due to lack of coverage may induce restriction on the account. Furthermore, negative information on account activities is reported to the central credit database. Therefore, it is important to track what is going on in the account, and to be proactive, in order not to exceed the credit line and incur returned debits.
For more information on this topic, please see the link to questions and answers on checks without coverage on the Credit Database page:
https://www.boi.org.il/en/ConsumerInformation/ConsumerIssues/Pages/ChecksGeneral.aspx