The Bank of Israel noted that there was no significant relief for mortgage takers, about two weeks after the reform took effect • The Governor, Prof. Amir Yaron, stressed that he expects the move to lead to a significant reduction in customer payments
Construction in Modiin
Photography:
Joshua Joseph
The Bank of Israel issued a statement today (Tuesday) stating that "in accordance with preliminary indications from the field, the abolition of the prime limit for mortgage takers has not been rolled over to a sufficient level, so far, for the benefit of consumers."
As you may recall, the mortgage reform came into effect about two weeks ago, and as part of it, the limitation of the prime interest rate component in the mortgage mix was abolished.
The Bank of Israel's announcement stated that the Governor, Prof. Amir Yaron, instructed his people, led by the Supervisor of Banks, to examine and formulate relevant policy measures, insofar as the abolition of the prime limit is not rolled out to a sufficient level by the banks for mortgage takers.
The Governor stressed that he expects the relief to be reflected in a significant reduction in customer payments.
Yaron commented on the move last week, during a discussion in the Finance Committee: "The issue of the mortgage mix is important. We changed it and we are in the process of forming. There is a transition process here that will only intensify once the issue enters. "So, and I expect more. If we do not see it, we will continue to challenge the banking system."
