Monthly report on the programs the Bank of Israel is operating in the financial markets in view of the corona crisis

The Bank of Israel is operating a number of programs in order to deal with liquidity difficulties that have affected the financial market due to the corona crisis, ensure the proper functioning of the financial markets, ease the terms of credit in the economy, and support economic activity and financial stability.

The following is a monthly update of the balances of the programs operated as of May 31, 2020.

​The long-term loan program that the Bank provided to the banking system with the aim of increasing the supply of credit to small and micro businesses[1] ended at the end of May. As part of that program, loans totaling NIS 4.6 billion were provided to the banking system.

 

 

Repo transactions with bonds as collateral[2]

Dollar/shekel swap transactions

Government bond purchases

Bank of Israel announcements on the subject

March 15, 2020

March 18, 2020

March 23, 2020

Balance as of -

NIS billion

$ billion

NIS billion

March 31, 2020

5.5

7.5

8.5

April 30, 2020

1.8

7.5

13.2

May 31, 2020

1.6

6.8

19.2

 



[1] In accordance with the Monetary Committee’s decision of April 6, 2020, the Bank of Israel provided the banking system with 3-year loans at a fixed interest rate, with the aim of increasing the supply of bank credit to small and micro businesses.  The program was operated until the end of May. For more information, see the press release at

https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/6-4-2020.aspx

[2] On April 6, 2020, the Bank of Israel expanded the repo tool such that it would include corporate bonds as collateral, in addition to government bonds.  For more information, see the press release at https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/6-4-2020.aspx​