Yes to capital adequacy in Israel 

The process in Israel was reducing credit growth and mortgage business (and thereby increasing the cost of mortgages), selling credit portfolios to institutional bodies and hedging activities – meaning a waiver of future profits, such as sales law guarantee insurance portfolio’s. Now the expectations are that the banks could increase credit growth and dividend distribution

Mizrahi Tefahot Bank reinsured NIS 15 Billion of its Housing Bonds Portfolio with Global Reinsurers – Led by CRS

Bank Mizrahi Tefahot insured Sales Law Guarantees for Housing Bonds contracts in the amount of 15 Billion NIS. They are not the first join, as Bank Leumi, Hapoalim and Discount already insured their Housing Bond Portfolios. This transaction will improve the capital adequacy ratio of the Bank by 0.25% and improves its ability to grow in its Credit portfolio.

Hapoalim Bank reinsured NIS 27 Billion of its Housing bonds portfolio with Global Reinsurers – Led by CRS

Bank Hapoalim has finalized agreements with highly ranked international Re(insurers), to acquire its housing bond portfolio. The insured part of the portfolio is valued at 27 billion NIS, while the insurance policy protects the bank in case it is required to pay funds to realization of the guarantees.

Discount Bank improved its capital adequacy; reinsured its NIS 2.9 Billion performance bonds portfolio – Led by CRS

Discount Bank recently completed a deal with international (Re)insurers rated at least AA- which insured 80% of the portfolio in the amount of NIS 2.9 billion, which includes performance guarantees given to customers of the Bank’s business division. These customers include defense sector exporters, real estate contractors, infrastructure projects and public transportation projects.

Israeli banks are close to Real Estate Sector limitations

“We have been approached by contractors who were denied financial investments. There are bank branches right next to the Association’s building, and they come straight here after the meeting. It has recently turned into a phenomenon, and we have seen it grow beyond normal proportions,” says Israel Builders Association president Roni Brik, “The major banks, which are the main financiers of real estate projects, have already reached their credit limit set by the bank of Israel. The smaller ones are around the 15% mark, and decided not to go as far as the 20% threshold.”

Hapoalim Bank will reinsure NIS 25 billion of its Housing bonds portfolio with Global Reinsurers- Led by CRS

Bank Hapoalim is in the midst of advanced negotiations with an international (Re)insurers to purchase a coverage in the amount of 25 billion NIS for its housing bonds portfolio. The bank will grant the guarantees to those who purchase the property during the construction time-frame to ensure rights for the buyer. The transaction is led by the corporate division supervisor Jacob Orbach.

Leumi bank reinsured NIS 25 Billion of its Housing Bond Portfolio with Global Reinsurers – Led by CRS

Bank Leumi has just announced that it will Re-insure its housing bond portfolio with global (Re)insurers.

This deal has been leaked by “Calcalist” last September during the negotiation process. It was then revealed that the bank was in the midst of negotiating a transaction for insuring a policy in the amount of 25 Billion NIS with Swiss Re, Munich Re who have signed a similar deal with Discount bank in August of last year.

Leumi bank intends to reduce the risk on its NIS 25 Billion Housing bond portfolio – The deal is led by CRS

The Bank is in advanced talks with global re-insurers for the purchase of NIS 25 billion in the housing bond portfolio. The deal will allow the bank to release 10 billion in risk assets and increase capital adequacy ratio at 0.3% Leumi bank will purchase an insurance policy for the Sales Law guarantees.

First deal in the market led by CRS – Discount Bank reinsures its NIS 6.8 Billion Housing Bonds Portfolio with Global Reinsurers

Discount purchased an insurance policy in the amount of NIS 4 billion on its housing bond portfolio. The transaction, which took effect last August, will allow the bank to release capital of NIS 1.6 billion and improve its capital adequacy ratio by 0.15%.
This is an innovative transaction banking market in Israel, funded through international re-insurers led by Swiss Re and Munich Re.