In the red

It’s official – the Bank of Israel is worried about the whopping numbers of Israeli bank account holders who end up in the red at least once a year. It therefore is putting in motion new and more extensive reporting requirements of banks.

These would oblige banks to submit comprehensive quarterly statements on their credit exposure in the household sector according to the borrowers’ level of risk. The aim is to allow the BoI to determine the extent of the banking system’s exposure. Individual borrowers will be ranked in groupings based on their income, financial holdings, the status of their loans, whether they are in arrears, etc.

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