The Bank of Israel operates several programs to deal with liquidity difficulties that have adversely impacted the financial system due to the coronavirus crisis, to ensure the proper functioning of the financial markets, to ease the terms of credit in the economy, and to support economic activity and financial stability.
The following is a monthly update on the balances in the programs that were put into operation, as of May 31, 2021:
|
|
Repo transactions with bonds as collateral[1] |
Dollar-shekel swaps |
Government bond purchases |
Corporate bond purchases |
Long-term loans to the banking system for providing credit to small businesses[2] |
|
Date announced by the Bank of Israel |
|||||
|
Balance as of: |
NIS billion |
$ billion |
NIS billion |
NIS billion |
NIS billion |
|
March 31, 2020 |
5.5 |
7.5 |
8.5 |
- |
|
|
April 30, 2020 |
1.8 |
7.5 |
13.2 |
- |
1.2 |
|
May 31, 2020 |
1.6 |
6.8 |
19.2 |
- |
4.6 |
|
June 30, 2020 |
1.5 |
4.5 |
23.4 |
- |
4.6 |
|
July 31, 2020 |
1.5 |
0.0 |
23.9 |
0.6 |
4.6 |
|
August 31, 2020 |
1.5 |
0.0 |
29.9 |
0.9 |
8.7 |
|
September 30, 2020 |
1.5 |
0.0 |
33.6 |
2.1 |
12.2 |
|
October 31, 2020 |
1.5 |
0.0 |
37.0 |
3.1 |
13.8 |
|
November 30, 2020 |
1.5 |
0.0 |
41.6 |
3.5 |
16.3 |
|
December 31, 2020 |
1.5 |
0.0 |
46.2 |
3.5 |
19.6 |
|
January 31, 2021 |
1.5 |
0.0 |
50.4 |
3.5 |
22.7 |
|
February 28, 2021 |
0.8 |
0.0 |
54.8 |
3.5 |
25.0 |
|
March 31, 2021 |
0.5 |
0.0 |
58.9 |
3.5 |
28.1 |
|
April 30, 2021 |
0.5 |
0.0 |
62.3 |
3.5 |
31.6 |
|
May 31, 2021 |
0.5 |
0.0 |
65.3 |
3.5 |
34.2 |
[1] On April 6, 2020, the Bank of Israel broadened the repo tool to include corporate bonds as security, in addition to government bonds. For more information, see the press release at https://www.boi.org.il/תקשורת-ופרסומים/הודעות-לעיתונות/בנק-ישראל-מפעיל-כלי-מדיניות-נוספים-תכנית-להגדלת-היצע-האשראי-לעסקים-קטנים-וזעירים-ועסקאות-ריפו-עם-אגח-תאגידיות-כבטוחה/
[2] In accordance with the Monetary Committee’s decision of April 6, 2020, the Bank of Israel provided the banking system with 3-year, fixed-rate loans, with the goal of increasing the supply of credit to small and micro businesses. The program was operated first until the end of May and was renewed in August. Within the framework of this program, the new pillar—which was decided upon on October 22, 2020—began to operate as well, through which the loans are for 4 years at a negative interest rate of -0.1 percent.