Israeli banks and households resilient to higher rates and unemployment
Housing market withstands adverse scenarios in macroeconomic stress test
Israeli banks and households would withstand a sudden increase in interest rates and unemployment, says the Bank of Israel.
The central bank’s macroeconomic stress test for the banking system finds “risk in the housing credit portfolio remains low compared to other credit segments and that the portfolio’s quality has even improved in recent years”.
This year’s scenario includes a 500 basis point increase in interest rates and unemployment that hits 9.3%.
“Higher interest rates in the scenario
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