The profits of the banking sector have been promoted by high interest rates, cushioning them during the last six months of last year of the macroeconomic risk that maintained Israel’s economic activity below the long -term trend and led to higher government financing costs , a premium of greater risk and credit and credit qualification of the sales.

The Central Bank warned a possible deterioration if the fight in Gaza was renewed and, as the tariffs of the president of the United States, Donald Trump, increase the risks for growth, warned about the risks associated with “swallowing.”

In its financial stability report for the second half of 2024, the Central Bank said that credit reimbursement crime rates remained stable and historically low, while the loan loss provisions of the banks also decreased.

“The resilience of the main financial institutions remained high, with improvements in capital rates for banks and insurance companies, which were already high,” said Tuesday’s report.

It is forecast that Israel’s economy has grown 0.6% in 2024, with Israel’s wars against the Palestinian militant group Hamas in Gaza and Hezbollah in Lebanon that weigh on growth. Since then, Israel has forged the fire of high fire with both Hamas and Hezbollah.

The Central Bank said that at the end of the year, risk financing costs and Israel’s debt premium decreased a bit, reflecting a moderation in geopolitical risk evaluations and the improvement improved in local markets.

In the fourth quarter, Tel Aviv shares increased but remained low in terms of dollar in relation to global shares indices.

“Together with the reduced potential of a negative impact on shares prices due to risk absorption, the vulnerability of the financial system of assets pricing channels decreased to a medium-high level compared to the first half of the Year, “said the Central Bank.

From 2025, the report will be published annually instead of semiannually, said the bank.

(Steven Scheer report; Barbara Lewis edition)