In its financial stability report for the first half of 2021, the Bank of Israel mentioned both the rise in mortgage loans and the credit granted to builders and contractors. The Bank of Israel warns of banks’ exposure to the real estate sector in its Financial Stability Report for the first half of 2021. The warning came after news yesterday that the Israeli public received real estate loans worth NIS 11.5 billion in July, just below the total of real estate loans. . A record time of NIS 11.6 billion worth of mortgages taken out in June. All indications are that NIS 100 billion will be taken into mortgage loans in 2021, up from NIS 78 billion in 2020, which was itself a record year. Related Articles Mortgage loans remained at record levels in July, all part of a massive 9.1% rise in credit to the public over the past year, after an average growth of 5.2% between 2018 and 2020. Credit to housing grew 9.7% Over the past year accounted for 82% of the growth in credit. In March 2021, 52.5% of bank credit to the public was for housing. However, the main risk to banks comes from credit given to builders and contractors rather than mortgages. “The risks are reflected in the exposure to the construction and real estate sector, which remains large, and stems first and foremost from the volume of credit to the industry, its significant weight in the credit portfolio, and the significant correlation between credit to housing, the size of which has also grown in the credit portfolio.” Published by Globes, Israel business news – en.globes.co.il – on August 11, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021 Construction Photo: Tamar Matsafi Guy Ben Simon and Roi Weinberger
0 Comments