Israel: The Bank of Israel publishes guidelines for banks and credit card companies

The Bank of Israel is publishing a draft for public comments of a Proper Conduct of Banking Business directive on “Implementation of Open Banking”. As part of this directive, the banks and credit card companies will be required to enable licensed and supervised third parties to gain access to a customer’s account, with the customer’s explicit consent, in order to obtain information or execute transactions.  This regulation is another step being taken by the Bank of Israel to advance competition and innovation in the Israeli banking system.  With this step, the Bank of Israel joins a number of regulators and leading entities in the world (such as in the UK, Australia, Singapore, the EBA, and others) who have published open banking principles for the financial system.

Customer accounts will be opened to third-party access in stages.  In the first stage, access will be provided to information on balances and transactions in the customer’s current account, within one year from the publication of this directive.  In the second stage, access will be provided to information on bank and nonbank payment card transactions, and to initiate payments in the customer’s bank account, within one-and-a-half years from the publication of this directive.  The third stage will include access to additional customer information on the customer’s credit and loans, on the customer’s deposits and savings, and on the customer’s securities portfolio, all within two years from the publication of this directive.

Full Content: Bank of Israel

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.