The Bank of Israel’s Banking Supervision Department published a report on an examination of how several supervised institutions market and operate revolving credit cards, and it summarises the requirements communicated to firms to address issues identified in sales, disclosure and ongoing servicing. The review covers revolving credit cards as a flexible credit product requiring only partial monthly repayment, with interest accruing on the unpaid balance. As of September 2024, outstanding revolving credit card balances totalled NIS 6.2 billion, around 4.6 percent of banks’ and credit card companies’ nonhousing consumer credit, with over 90 percent issued by credit card companies. The report sets out practical do’s and don’ts intended to improve the sales process, clarify terms and promote informed use, and strengthen post-enrolment service management, and it indicates these should underpin training and periodic instruction for staff involved in marketing and servicing. Banking Supervision is evaluating whether additional, specific regulatory measures are needed for the revolving credit card sector.
Bank of Israel 2025-06-12
Bank of Israel sets marketing and servicing requirements for revolving credit cards after supervisory review
The Bank of Israel’s Banking Supervision Department released a report on revolving credit cards, highlighting issues in sales, disclosure, and servicing, and outlining requirements for improvement. The report notes that as of September 2024, revolving credit card balances were NIS 6.2 billion, and the department is considering further regulatory measures.