Bank of Israel aims to boost construction credit with new regulation
Banking supervision department proposes reclassifying credit risk
The Bank of Israel is hoping to help the country's banks increase the supply of credit to the construction and real estate industry, in light of their efforts to reduce their exposure to risks.
Banks are prohibited from extending more than 20% of their total credit to any single industry, to prevent a crisis in that industry taking down the bank. In some cases this figure rises to 22%.
According to the Bank of Israel, a "number" of banks are approaching the limit in relation to the construction
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