Bank of Israel may seek data on high-tech credit

The Bank of Israel's Supervisor of Banks is considering asking commercial banks to report specifically on the extent of their loans to the high-tech sector, a spokesman said on Feb 12, 2001. Loans to the technology sector are currently included within the category of industry. Other sectors that are broken out include real estate and agriculture. A central bank spokesman said the high tech sector has become increasingly important in Israel's economy in the last few years. Weakness in U.S. markets and the global economy could force high tech companies to seek financing through other means.
The Bank of Israel's Supervisor of Banks is considering asking commercial banks to report specifically on the extent of their loans to the high-tech sector, a spokesman said on Feb 12, 2001. Loans to the technology sector are currently included within the category of industry. Other sectors that are broken out include real estate and agriculture. A central bank spokesman said the high tech sector has become increasingly important in Israel's economy in the last few years. Weakness in U.S. markets and the global economy could force high tech companies to seek financing through other means.

"Credit may become a more important means of financing for the high tech sector, instead of public offerings or venture capital financing," the spokesman said. "We want to have the data to follow what is happening in the sector," he said. The spokesman said the central bank encourages banks to diversify their loan portfolio and reduce risk by not becoming overly exposed to any particular sector.It was not yet known when the Supervisor of Banks would decide on the matter.

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