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2019 in economy: Will the capital market lead to a global crisis?

Since the financial crisis of 2008 and for almost a decade, the capital market had recorded increases, and interest rates have been minimal. In recent months, we have witnessed a change in these trends: capital markets have begun to materialize, and this is due to a combination of several factors. E...

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Bitcoin Fever: Will the Banks Get Left Behind or Maintain their Status?

During the past few months, Bitcoin has featured frequently in the headlines, after consistently beating out its own records in terms of value. On one December trading day the price of a single Bitcoin reached more than $20,000.  Its value has since weakened. However, even following its depreciatio...

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The Global Capital Market – Where To?

In the weeks prior to Donald Trump’s election as President of the United States, most capital market experts predicted a decrease in American stocks in the event that Trump would be elected, and he was. The reason for this was that there was concern regarding Trump’s actions, which were difficul...

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Consumer Credit is on the Rise – Does it endanger the Israeli Economy?

In the past months, we have witnessed a rising trend in the domain of household credit in Israel. For example, just in the last few days, articles were published in key media outlets regarding the upsurge in loans from credit card companies, despite high interest rates, and the fear of Israeli banks...

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The Trump Effect: The Appearance of New Banks in the US and What it means

The global media recently reported a demand from investors for US bank shares.In addition to this trend, renewed interest has arisen regarding the establishment of new banks in the country. This trend arises following the election of American President, Donald Trump, and that has some importance to ...

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The Credit Companies are Separating from the Banks: Why is No One Rushing to Buy?

As we’ve seen over the past few months, a law was legislated that requires the banks to sell their credit card companies. However, no one seems to be rushing – neither Israeli nor international companies – to purchase the credit card companies. This situation differs from other legislations fo...

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Social Banks in Israel—Will They Succeed?

Recent print and broadcast media articles reported on several clauses that will be included in the banking section of the emerging Hesderim (Arrangements) Law. One such clause includes the promotion of the establishment of credit unions, more commonly known as ‘social banks’. The idea behind thi...

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The Credit Database and its Risk Profile for Citizens—Who is it Good for and for Who Less so?

The economic affairs committee just approved a draft of the Credit Data Law for a second and third reading, which opens the doorway for competition in the consumer credit sector in Israel. According to the Credit Data Law, a credit database will be established in the Bank of Israel three years from ...

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Expected Reforms in the Israeli Banking Market—What are the Consequences?

The Shtrum Commission for increasing competitiveness in banking and financial services has not yet completed its work; however, it seems that that the expected reforms will consist of several sections—amongst which, Bank Leumi and Bank Hapoalim, the largest banks in Israel today, will sell their t...

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The Greek Debt Crisis: The bailout only postpones the inevitable, doesn’t solve the European problem

A few weeks ago Greece’s bailout agreement was signed, which requires the Mediterranean country to carry out reforms which will rescue them financially and prevent it from leaving the Eurozone. In return for the various reforms that Greece will implement, Europe will provide it with financial supp...

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