2023-12-17 11:18:00
Title: Banks Take Advantage of War to Increase Profits
Banks have been quick to promote the relief measures they are offering to victims of the war and the general public. However, a closer look reveals that banks may be taking advantage of the current situation to increase their profits.
While some banks have implemented measures like waiving mortgage payments and overdraft interest, there are also reports of self-promotion that do not necessarily represent a sacrifice on the part of the banks. In addition, the banks have recently updated interest rates on deposits, potentially indicating a decrease in interest rates in the economy. This has led to a trend of lowering interest rates on deposits, while the interest rates charged on mortgages and other credits remain high.
Data from the Bank of Israel reveals that, despite decreases in interest rates on deposits, the interest rates on mortgages have actually increased over the past few months. This means that banks are paying less for deposits while earning more on mortgages, resulting in higher profits for the banks.
These actions have real financial consequences for households. For example, a household depositing half a million shekels into an annual deposit for five years will earn significantly less compared to a few months ago. Similarly, the cost of a mortgage has increased, resulting in higher expenses for households.
Ultimately, it appears that the banks are taking advantage of the current situation to increase profitability, rather than genuinely providing relief to the public. These actions raise questions about the true motives of the banks, and the impact their decisions have on the public during a time of crisis.
As the owner of a financial consulting company, Aviram Tanenbaum has been closely following these developments. His analysis sheds light on how banks may be benefiting from the war, while households face financial challenges.
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