Discount Bank will guarantee IAI deal with State of India for $600 Million. CRS led this deal by reinsuring $480 Million, with AA Reinsurers.

The Bank’s guarantee will be the main part of the agreement – the sale of Barak’s missile systems for $ 1.6 billion. Bank Discount was the only bank that managed to place the guarantee within two weeks, reinsured 80% of the guarantee and thereby reduced its exposure to $120 million.

Calcalist has been informed that the bank’s exposure to international AA reinsurers has been made possible through Capital Relief Solutions (CRS). Owners, Esti Friedman and Itzik Klein approached the reinsures to (Re)insure 80% of the guarantees.

Reinsuring the Housing Bonds Portfolios of Israeli banks with Global Reinsurers, led by CRS, released Real Estate financing pressure.

A few months ago, Dr. Hedva Ber, the Director of Banks, decided that this would enable a relief for the banks and allow an increase to their credit. Moreover, the Bank of Israel estimated that this relief in return would increment the value of real estate credit by 10 billion NIS.

Just this past year and half, the majority of the banks acquired insurance from reinsurers to protect credit in the Sales Law Guarantees portfolio which is estimated at 70 billion NIS.

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

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.