The Bank of Israel is also formulating an outline for freezing loans to credit card companies

0
4


The Bank of Israel is formulating a special outline for deferring loans to credit card companies. This is what Calcalist learned. The outline for credit companies was born out of the companies’ refusal to join the outline that was formulated for the banks, claiming that it did not fit their special characteristics.

Read more in Calcalist:

As part of the emerging outline for credit card companies, it appears that they will undertake to approve an automatic deferral of consumer loans to all customers who wish to do so for a period of three months – and then be able to defer another three months at their discretion.

Customers will be able to submit the freeze application by the end of 2020. Similar to the outline at the banks, here too the automatic deferral will be of the fund, and the interest will continue to be paid (unless the credit card company agrees to defer interest payment as well). Yesterday, the credit card company ICC announced that it is partially adopting the banks’ outline and will allow its customers a similar three-month postponement.

From the right: Ron Fainero, CEO of Max, Levy Halevi, CEO of ICC, Ron Wexler, CEO of Isracard Photos: Amit Shaal, Rami Zranger

The outline that appears to the credit companies is considered “softer” than the outline to which the banks have committed, which includes the possibility of deferring a loan for six months. One of the big gaps between the two groups is the significantly extensive knowledge that banks have about their customers, compared to credit card companies.

Yesterday, criticism was voiced that credit card companies are not part of the outline for freezing bank loans. The chairman of the Economics Committee, MK Yaakov Margi (Shas), even sent a letter to the Supervisor of Banks calling on him to include the credit card companies in the outline. “I regret the absence of the credit card companies. You must work harder to attach them to this outline. It should be made clear to companies that their entry as full-fledged players into the consumer and business credit market also involves taking social responsibility. ”

The Histadrut’s Arlozorov Forum sent a letter to the Bank of Israel, and the Family Economics Advisers Association also criticized the exception of the credit companies.

Credit card companies rejected the audit. An industry source explained that the proposed outline was adapted for banks and not for credit card companies. “Credit card companies have different characteristics from banks in a variety of issues such as capital structure, and the information that banks have about customers is significantly wider than the information that credit card companies have. Therefore, it is not possible to apply an outline that suits banks to credit card companies.”

In addition, the credit card industry stated that when they sought to join the program according to which the Bank of Israel provided banks with cheap liquid sources for providing credit in a crisis, they were refused. “It is impossible that in some things we are expected to act like the banks, and in some things we are excluded,” an industry source said yesterday. It now appears that the issue will end in a compromise and the formulation of an outline suitable for companies in the industry.







Source link by https://www.calcalist.co.il/markets/articles/0,7340,L-3851901,00.html

*The article has been translated based on the content of Source link by https://www.calcalist.co.il/markets/articles/0,7340,L-3851901,00.html
. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!

LEAVE A REPLY

Please enter your comment!
Please enter your name here