Standard & Poor's: Israeli banks face long-term deterioration

Standard and Poor
(File photo: Jordan News)
TEL AVIVStandard & Poor's credit rating agency stated that Israeli banks face long-term deterioration in economic prospects and credit conditions, with declining revenues and a significant increase in credit losses due to the war in Gaza and heightened geopolitical risks to Israel.اضافة اعلان

As reported by Al-Mamlaka TV, S&P pointed out that the current developments in the Israeli war on the Gaza Strip pose a larger and more dangerous impact on the Israeli economy.

They mentioned that real estate-related lending poses a source of risk for Israeli banks, and exposure to real estate lending has increased significantly since 2020.

The agency stated, "Our current base case is that the conflict is likely to be largely confined to Israel and Gaza, continuing for no more than three to six months, and we now expect real GDP growth to slow to 1.5 percent in 2023, then to 0.5 percent in 2024."

"However, we see a high degree of uncertainty about the extent and duration of military operations, and if the conflict escalates materially, Israel's economic growth, financial position, and balance of payments could deteriorate significantly."

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