New Bank of Israel Fee Changes Simplify Guarantee Fees and Provide More Clarity for Customers

The Bank of Israel has recently released a draft circular detailing major changes to certain types of bank fees. One significant modification is that banks will now be required to set a fixed fee for bank guarantees, regardless of the amount of the guarantee, instead of calculating it as a percentage of the guarantee amount. Currently, the commission ranges from 2-2.5% of the guarantee amount, with a minimum of 250-350 shekels.

Another crucial change in the draft circular is the restriction placed on banks’ ability to charge fees for early repayment of mortgages. Under the new rules, a fee will be charged once for the entire mortgage, regardless of its structure or the number of loans within that mortgage. These changes are expected to come into effect three months after the final approval of the circular.

Furthermore, there will also be updates in how commissions are calculated for managing a portfolio of securities for clients with a portfolio size up to 400 thousand shekels. The new rules require commissions to be denominated in shekels rather than as a percentage of portfolio size.

In addition to these changes, there have been discussions around gas prices and electricity providers for businesses in different regions such as Zhytomyr, Chernihiv, Ternopil and others. These updates reflect ongoing adjustments and regulations in both financial and energy sectors.

Overall, these modifications reflect an effort by Bank of Israel to simplify their fee structure and provide more clarity and predictability for their customers when it comes to bank guarantees and other financial services.