Overdrafts Worry Bank of Israel

YERUSHALAYIM (Hamodia Staff) -
At the cash-machine of the Israeli Discount Bank in Yerushalayim. (Nati Shohat/Flash 90)
At the cash-machine of the Israeli Discount Bank in Yerushalayim. (Nati Shohat/Flash 90)

It’s no longer only the average Israeli who’s worried about his overdraft, now the Bank of Israel is worried too.

An increase in per capita debt has moved the BOI to undertake a study to find out more about the phenomenon. Four years ago, the collective debt owed by households to their banks totaled 106.8 billion shekels. This has now risen by 18%, to 126 billion shekels.

No fewer than 63.5% of Israelis are frequently in “minus” condition in their bank accounts, and Bank of Israel wants to know why.

One-seventh of Israelis are always overdrawn, and another eighth “most of the time.”

The problem affects salaried employees and small business owners, high- and low-income earners, religious, secular, young and old.

The only major sector relatively unaffected by overdraft syndrome are young couples and singles who have not yet taken out a mortgage for a home.