Bank of Israel annual survey reports increased banking system risk

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The Bank of Israel on July 25 published its annual survey of the banking system in Israel, which highlighted an increase in systemic risk and set out measures taken by the central bank to reduce the threat.

"Risks increased in the banking system's operating environment in 2011," the central bank said. The survey found these risks originated both from deteriorations in the external environment and from domestic factors, including falls in share prices, increases in risk spreads and geopolitical

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