And governments can help by ensuring that the labour market is as flexible as possible, in order to ensure that, when shocks do hit the economy, they are not reflected in persistent increases in unemployment. Finally, it is worth noting that central banks can not solve regional, or sectoral, problems.
These changes, alongside initiatives led by the Bank of Israel and the Banking Supervision Department-such as building a credit register, promoting greater efficiency in the banking system, and promoting technology and innovation in banking-will in the coming years create an advanced banking system that is more competitive in the retail and small business areas.