In its Monetary Stability Report for the primary half of 2021, the Financial institution of Israel mentions each the rise in mortgages and credit score to builders and contractors.
The Financial institution of Israel warns on the publicity of banks to the true property sector in in its Monetary Stability Report for the primary half of 2021. The warning follows the information yesterday that the Israeli public took mortgages totaling NIS 11.5 billion in July slightly below the all-time report of NIS 11.6 billion value of mortgages taken in June. All of the indicators are {that a} report NIS 100 billion in mortgages will likely be taken in 2021, up from NIS 78 billion in 2020, which was itself a report 12 months.
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All that is a part of the big rise of credit score prolonged to the general public of 9.1% over the previous 12 months, after common development of 5.2% between 2018 and 2020. Credit score for housing grew by 9.7% over the previous 12 months and comprised 82% of the expansion in credit score. In March 2021, 52.5% of banking credit score to the general public was for housing.
Nonetheless, the principle danger to the banks comes from credit score prolonged to builders and contractors relatively than mortgages. “The danger is mirrored in publicity to the development and actual property business, which stays vital, and stems firstly from the dimensions of the credit score to the business, its excessive weight within the credit score portfolio and the excessive correlation between credit score for housing, whose measurement within the credit score portfolio has additionally grown.”
Revealed by Globes, Israel enterprise information – en.globes.co.il – on August 11, 2021
© Copyright of Globes Writer Itonut (1983) Ltd. 2021
Building Picture: Tamar Matsafi
Man Ben Simon and Roi Weinberger
