The Bank of Israel recently published a draft circular outlining significant changes to certain types of bank fees. One of the key changes is that banks will have to set a fixed fee for bank guarantees, regardless of the amount of the guarantee, instead of calculating it as a percentage of the amount of the guarantee. Currently, the commission ranges from 2-2.5% of the guarantee amount, with a minimum of 250-350 shekels. The draft circular also proposes lower commission rates for bank guarantees for real estate tenants compared to regular bank guarantees.
Another important change in the draft circular is the restriction on the ability of banks to charge fees for early repayment of mortgages. Under the new rules, the 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 take effect three months after the final approval of the circular.
It should be noted that there will also be changes in the calculation of securities portfolio management commissions for clients with a portfolio of up to 400 thousand shekels. The new rules will require commissions to be denominated in shekels rather than as a percentage of portfolio size.
In a separate topic, there are discussions about gas prices for businesses, with a focus on suppliers in various regions such as Zhytomyr, Chernihiv, Ternopil and others. In addition, electricity suppliers for businesses in different regions are mentioned. These changes and updates reflect ongoing adjustments and regulations in the financial and energy sectors.
