Bank of Israel Takes Measures to Aid Economy During ‘Iron Swords’ War

Bank of Israel/ Wikipedia

The Bank of Israel (BOI) issued a comprehensive outline, adopted by the banks, to help customers deal with the ramifications of the “Iron Swords” war

Since the beginning of the fighting, the BOI Governor Prof. Amir Yaron has set out a number of principles for the banking system’s activities during this period. This included emphasizing the need to show extra sensitivity and provide responses to customers, with particular emphasis on those living near the Gaza Strip, the families of the victims, and the families of mobilized forces.

Also, The Bank of Israel Governor and the Supervisor of Banks today held a meeting with the Directors General of the banks and the credit card companies. The discussion dealt with broad actions to assist the population that has been harmed, with an emphasis on residents of the communities surrounding Gaza and the south, the security forces that have been mobilized, the population that has been evacuated from their homes, and first-degree relatives of those who have lost their lives, the missing, and the abducted.

This is in addition to the variety of individual measures that the banks and credit card companies have so far taken, with the support and encouragement of the Banking Supervision Department, some of which have included the establishment of funds to provide interest-free bridge loans, leniencies in delaying loan and mortgage repayments, exemptions from current account fees, increased credit facilities, and more.

The Bank of Israel Governor and the Supervisor of Banks today held a meeting with the Directors General of the banks and the credit card companies. The discussion dealt with broad actions to assist the population that has been harmed, with an emphasis on residents of the communities surrounding Gaza and the south, the security forces that have been mobilized, the population that has been evacuated from their homes, and first-degree relatives of those who have lost their lives, the missing, and the abducted.

In addition, the Banking Supervision Department has acted in recent days to formulate a broad outline to ease the credit and fees burden for households and businesses within a 30 km range from the Gaza Strip, citizens who have been evacuated from their homes by official agencies, those who have been mobilized through emergency call-up orders, or those who are first-degree relatives of those who have been killed or abducted or those who are missing. The outline relates to delaying loan repayments in three activity segments (mortgages, consumer credit, and business credit), debt balances (overdrafts) in current accounts, and fees.

Bank of Israel Governor Prof. Amir Yaron said, “During these difficult times, we all must get involved, and it is important that the banks continue providing solutions to the public in dealing with the economic difficulties resulting from the war.”

Yaron said that they brought together the heads of the banking system in order to formulate a uniform plan, with an emphasis on assisting the population that has been harmed, the security forces, and those who have to evacuate their homes.

“I am certain that this plan will help the public get through this challenging period,” he added. “In parallel, the specific measures that the banks have published for their customers in recent days are important, and we call on the banks to continue helping the public, and particularly to be attentive to their customers and to find them tailored solutions.”

Amir Yaron also pledged that the Bank of Israel will continue to respond to the various economic issues that arise from the war, and that it will formulate measures to support and assist in accordance with the tools that are available to the Bank.