The foreign banks are dramatically reducing their exposure to the Israeli economy

Let’s explain the process for a moment: when a large institutional investor is interested in entering into a rapid investment, mainly abroad, he provides equity capital for the transaction and completes it with foreign financing. The foreign financing comes from the Israeli or foreign banking system. In principle, the Israeli banks deal with the Israeli banks for these transactions, which are usually Short-term transactions at a nice interest rate, but the Israeli banks limit themselves in the scope of this type of transactions, which opens the door for the foreign banks to “play” with the Israeli institutions.