Government Programs to Assist Banks in Crisis: Creating an Early Warning System
In the wake of the 2008 financial crisis, governments around the world have initiated programs to assist the banking industry. While the global situation has slowed Israel’s economy, its banks thus far have remained largely unharmed. Given ongoing uncertainty in the local and world economies, however, there’s no guarantee Israeli lenders will avoid risk if the next sovereign phase of the global financial crisis continues to deteriorate. This analysis evaluates the compatibility of programs that have been implemented globally with the Israeli banking system should the government need to take supportive measures.