Banks to be required to allocate more capital against their housing credit portfolios
by Adi Ben -Israel
The Bank of Israel said it is imposing new restrictions on mortgages amid a continued increase in home prices and the value of mortgages, with Supervisor of Banks David Zaken distributing a draft guideline to the banks calling for a larger capital cushion against the mortgages they grant to homebuyers.
“The draft guideline is being published in light of the continued growth in housing credit and its proportion of the total banking credit portfolio,” the Bank of Israel said Sunday. “ The aim of the guideline is to enlarge the capital cushion that the banking system allocates against its housing-credit portfolio, because of the rise in the risks inherent in this portfolio, and thereby strengthen the banks ability to absorb unexpected losses, and reinforce financial stability in general.”
The guideline states that, beyond the targets set by the Supervisor of Banks for Tier 1 capital for banking corporations (9% by 2015 and 10% by 2017 for the two largest banks), the lenders will have to increase their capital by an amount representing 1% of their credit for housing. Implementation will be in stages, with the date set for meeting the capital target determined in the guideline being January 1, 2017
I have dealt with people starting from my teen years whether it was a junior counselor position, volunteering in community centers for the elderly, working as a secretary and as a real estate agent. Dealing with the public is a learning experience and challenging. Someone once told me that a person can learn from every being they meet whether it be a child or a stranger they met for 2 minutes. This I hold true. I have met so many people and have learned a lot and keep learning.
My father who ran his own business made it a point to provide good service to all his customers no matter how small the customer.
I hope to offer quality, honesty, and result in happy customers whether they are sellers, buyers, or renters.