Israel’s Central Bank Warns Against Splitting Credit Database Bill from the Economic Arrangements Law

Central Bank’s Unprecedented Stance

In a rare public statement, the Bank of Israel urged the Knesset Committee not to separate the proposed credit database bill from the Economic Arrangements Law. This legislation is vital for establishing a new credit database intended to enhance competition in the credit market. The central bank has emphasized that fragmenting the bill could delay the implementation of the database by several years.

Economic Implications

According to the Ministry of Finance, the establishment of the credit database could potentially save small and medium-sized enterprises approximately 5 billion shekels when fully operational. The Bank of Israel underscores the necessity of prioritizing the creation of this database over other financial reforms in order to maximize economic benefits.

Legislative Context

As discussions continue within the Knesset regarding the Economic Arrangements Law, the central bank’s strong advocacy for the credit database reflects its significance in the broader context of economic stability and financial competitiveness. The Bank has warned that additional splits in the law could result in hundreds of millions of shekels being lost in potential savings for businesses.

Conclusion

The Bank of Israel’s call to action signifies a crucial moment in the development of Israel’s financial infrastructure, stressing the need for unified legislative efforts to support economic growth and competitive markets.

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