In the business sector, profits continued to rise last year at a solid pace, boosted in part by continuing advances in productivity. Strong corporate balance sheets combined with expanding sales and favorable conditions in financial markets fostered a solid increase in spending on equipment and software last year.
The Supervisor of Banks is carefully following the regulatory reforms in the area of corporate governance and risk management suggested by the newly established Financial Stability Board and the Basel Committee, and where relevant, is adapting them and requiring their implementation in the Israeli banking system. In addition, we are studying the new topic of macroprudential surveillance, and considering its implementation.