Sunday, August 9, 2020 in:21 pm | י”ט אב תש”פAn ATM system of Bank Mizrahi-Tefahot in fundamental Yerushalayim. (Olivier Fitoussi/Flash90)In the scenario entertained by analysts, Israel’s banking system is strong enough to weather the financial pressures caused by the coronavirus, based on this Bank of Israel.
In other words, even in case of a tenfold growth in credit losses, the banking system will keep its own stability.
The BoI’s Financial Stability Report for the First Half of 2020 posited that have been there an increase in costs for credit reductions from less than 0.3% in 2019 to 3.3% of the entire credit portfolio, or even at a much more extreme instance to nearly 4.7% of the overall portfolio, the machine could continue to work normally, Globes reported Sunday.
“Clearly the scenarios we present are not superior to other scenarios, but the tool allows quick analysis — even if somewhat crude — of the sensitivity of the banking system to various levels of credit losses,” the report stated, meaning the characters in conversation are just supposed to provide a rough idea about what might occur.
The bottom line Seems to be that regardless of the buffetings the market has taken and may take in the Not Too Distant Future, the BoI’s evaluation is that “the banking system remains robust.”