The Bank of Israel is expanding its reporting requirements on mortgages, and for the first time it is demanding that the banks make detailed monthly reports. Sources inform ''Globes'' that, last Tuesday, the Banking Supervision Department published Directive No. 876: Monthly reports by mortgage banks on mortgage activity.
The directive states that by the 20th of each month, the banks will provide detailed information about their mortgage activity in the preceding month, according to various cross-sections. In an unusual move, the directive comes into effect immediately. By May 20, mortgage banks will have to notify the Bank of Israel about their mortgage activity in April.
In July 2010, the Banking Supervision Department expanded the reporting format, and established a quarterly format that will come into effect in July 2011. The Bank of Israel brought forward the date and increased the frequency of the reporting.
The updated reporting format applies to loans for buying a home and loans secured by a home, which homeowners took to cover current expenses. The Bank of Israel added, "A loan for buying a home that is secured by another home will be included in the reporting definition."
The Bank of Israel needs the information because it believes that its database on the housing market is inadequate, and includes contradictory data (for example data from the Central Bureau of Statistics versus data from the Ministry of Finance), which makes it harder to make sagacious decisions. The Bank of Israel also senses that the current reporting is insufficiently broad to understand market trends and processes, and that it cannot allow itself to rely on insufficient and retrospective reports.
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011