JERUSALEM, Aug. 5 (Xinhua) -- The Israeli banking system is at a high level of stability despite the coronavirus crisis, according to a report issued by Israel's central bank on Wednesday.
The results of recent sensitivity tests conducted by the bank show that in any extreme scenario Israel's banking system will remain stable, said the report.
The tests provided a measure of the system's stability in the short and medium terms, making it possible to identify sensitivities of each bank and of the entire banking system, according to the central bank.
In addition, the scenarios examined showed the importance of the household and small and medium business sectors for the stability of the banks, as a severe crisis in these sectors could lead to a significant effect to the banks' capital adequacy.
"Given the nature of the current crisis, these sectors are vulnerable to economic and financial difficulties, and therefore the Bank of Israel is paying close attention to their condition," the report said. Enditem
