This site would like to set some non-essential temporary cookies. Some cookies we use are essential to make our site work.
Others such as Google Analytics help us to improve the site or provide additional but non-essential features to you.
No behavioural or tracking cookies are used.
To change your consent settings, read about the cookies we set and your privacy, please see our Privacy Policy



SUMMER SALE - 20% off new publication subscriptions
Back to Contents

Volume: 4 Issue: 8
(August 2010)

Keywords:
banks risk assessments social networking social networking site

Jurisdictions:
israel

Israeli regulator urges banks to draft clear policies on SNS use

The Israeli Supervisor of Banks, Rony Hizkiyahu, sent a letter to banks and credit companies on 28 July, urging them to conduct risk assessments and establish clear policies for employee use of social networking sites (SNSs).

The Supervisor recommended that each policy detail which services and sites can be accessed, who can use such sites on behalf of the financial institutions, and how to use them.

'The use of social networks involves potential dangers to a bank and its customers, including operational, legal, regulatory and reputational risks', wrote Hizkiyahu. He highlighted the danger of individuals disseminating false or deceptive information, or impersonating the bank or its employees. He warned that websites often lack a sufficient level of security.

"This development shows the increased prevalence of corporate web 2.0 tools, which raises security concerns for large multinationals", said Omer Tene, Israeli Legal Consultant and Associate Professor at the College of Management School of Law. "It also shows collaboration between regulatory bodies. Data has become the key ingredient of the information economy, placing privacy and security on the agenda of securities, financial markets and competition regulators."

The use of social networking sites has grown significantly in the financial services industry, as it provides companies with the means to contact customers, provide information and services, and for handling complaints and banking transactions.

Search Journal Archives



Our publication archives contain all of our articles, dating back to 2006.
Canít find what you are looking for?
Try an Advanced Search

Log in to E-Finance & Payments Law & Policy
Subscribe to E-Finance & Payments Law & Policy
Register for a Free Trial to E-Finance & Payments Law & Policy
E-Law Alerts
E-Finance & Payments Law & Policy Pricing
The Insider Threat

Social Media

Follow E-Finance & Payments Law & Policy on TwitterView our LinkedIn ProfileE-Finance & Payments Law & Policy RSS Feed