The Israeli banking system remained at a high level of stability in the first half of 2021 despite the coronavirus crisis, according to a semi-annual report issued by Israel's central bank, Trend reports citing Xinhua.
Although the crisis affected the economic activity of banks and insurance companies in Israel, their resilience remained high, the report noted.
The risk to the banks' resilience has returned almost to its pre-coronavirus level, the Bank of Israel assessed.
"While the risks of some damage to profitability are still higher than before the crisis, the uncertainty has decreased significantly, as well as the fear of damage to the banks' stability," according to the report.
The bank also noted that there was a decrease in the risk of banks' significant losses on private credit.
Also, despite a significant recovery recorded in the business sector in Israel, many small businesses have not yet returned to their normal level of activity.