When assets and liabilities portfolios are being put together, interest-rate differentials between Israel and abroad, which have existed for a long time and still exist are outweighed by exchange-rate risk.
up to one year) on banks incorporated in non-OECD countries carries a risk weight of only 20 per cent, whereas long-term claims on banks in non-OECD countries carry a risk weight of 100 per cent. The new Capital Adequacy Framework, which has just been issued by the BIS as a consultative paper for comments, is reviewing this norm.