The Bank of Israel's Banking Supervision Department has published a retrospective update on customer assistance programs used during recent crises, reporting that payments on more than one million loans were deferred and that the absolute majority of affected borrowers, more than 90 percent, later resumed repaying their debts in an orderly manner. The update presents the programs as a broad early intervention for households and businesses facing cash flow pressure, with no uncontrolled increase in loan loss provisions while credit in the economy continued to grow. The measures were developed and adjusted during the COVID-19 pandemic, the war that began on October 7, 2023, and Operations Rising Lion and Roaring Lion against Iran. Deferrals were extended in line with conditions in the field, with particularly high use among households and small businesses. The broader policy package also included regulatory adjustments and leniencies that allowed banks to hold less equity in order to expand credit to households and businesses while maintaining risk management, helping keep credit available across the economy despite the higher-risk environment.
Bank of Israel 2026-05-10
Bank of Israel says crisis support programs deferred over one million loans and more than 90 percent of borrowers resumed repayment
The Bank of Israel’s Banking Supervision Department published a retrospective update on crisis-era customer assistance programs, noting that payments on more than one million loans were deferred and that over 90 percent of borrowers subsequently resumed orderly repayment. The measures, developed and adjusted during the COVID-19 pandemic and recent conflicts, included loan deferrals and regulatory leniencies that enabled banks to hold less equity and continue expanding credit to households and businesses.