This is a very important area given its significance for restoring demand for property and reducing the cost of credit. Securitisation could be used to offload the risk to specialised investors, if the legal framework is established to facilitate the transfer and work-out of bank assets.
In the second half of the 1980s and during the 1990s the Bank of Israel initiated many far-reaching changes in Israel’s economy, including liberalization, opening the economy to capital flows, and embarking on the disinflation process. This was not an easy period, and there was heated public debate and controversy all along the way.