Measures taken so far to limit mortgages were a first step and relatively moderate, says the Bank of Israel in excepts published today on macroprudential policy that will appear in its Annual Report, which will be published on March 30.
The Bank of Israel says, “During 2010, the Supervisor of Banks announced a series of steps in the housing credit market, that were directed at a specific segment of new loans (highly leveraged, at floating interest, above a certain amount). For these mortgages, an additional capital allocation was imposed.”
The bank adds, “The steps taken until now in the mortgage market were a first step, and were relatively moderate. They were intended, among other things, to increase the public”s awareness of the risks inherent in the various mortgage options.”
This statement implies that Governor of the Bank of Israel Prof. Stanley Fischer could take tougher measures to limit mortgages in the future.