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Israel Bourse Petitions Minister Over Lending ‘Crisis’

Aug 23, 2016 11:08 AM   By Rapaport News
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RAPAPORT... The Israel Diamond Exchange (IDE) called on Finance Minister Moshe Kahlon to help overturn First International Bank of Israel’s (FIBI) decision to tighten its lending standards for the industry.

The bourse encouraged Kahlon to intervene in a petition that claims FIBI’s move was forced by an new policy carried out by Hedva Ber, Israel’s Supervisor of Banks, which “was not supported by data or economic forecasts.” FIBI rolled out more stringent collateral demands and now follows a policy “that does not exist in any other sector,” the letter says.

The bourse’s president Yoram Dvash has vowed to fight FIBI’s decision, alleging it was influenced by “pressure” from the regulator. The IDE will hold a meeting to discuss the matter after the exchange re-opens August 28.

“In the absence of a responsible grown-up in the Finance Ministry, and with irresponsible actions leading to a crisis in an industry that employs more than 20,000 diamantaires, we ask you to be the responsible grown-up,” the letter urges Kahlon.
Tags: FIBI, First International Bank of Israel, Hedva Ber, IDE, Israel, Israel Diamond Exchange, Rapaport News, Supervisor of Banks
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