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Stress test finds Israel banking system stability safe from recession 

June 29, 2014
Steven Scheer, Reuters

There is no danger to the stability of Israel's banking system should there be a severe recession, although the hit to banks' profits could be significant, according to the results of the latest Bank of Israel stress test.

The central bank on Sunday said it tested two scenarios, one of which was an adverse one that included a domestic recession with a large impact to the housing and real estate industry as a result of a deterioration in the geopolitical situation.

"In a situation in which the adverse scenario is realised, a significant impact on the banking system is expected, but no risk to its stability is seen," the banking regulator said.

Read More: Reuters

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