Apart from carrying out the usual onsite and offsite inspections, AMCM also pays close attention to changes in internal operating environment of banks and external economy with a view to issuing timely directives and suggestions. It continues to perfect legislations relating to financial supervision to ensure that financial institutions are able to maintain stability and enhance their ability to combat risks.
As a general background, let me recall that Israel saw a decade of hyperinflation in the 70’s and early 80’s, followed by a decade of disinflation policy that targeted a gradually diminishing inflation rate, while the present day 1%-3% range for top line inflation has been effective since 2003.