The general tenor seems to be that banks are specialised in an economic activity that can, to a growing extent, be performed by non-specialist players. If so, the demand for bank loans will decline and the structure of the balance sheets of banks will alter.
It is proposed that the staff work for the committee be done by the Financial Stability Division that was recently established in the Bank of Israel Research Department, with the aim of acting to promote financial stability which, according to the new Bank of Israel Law, is one of the Bank’s goals.