Israeli banks said to be more attractive than foreign ones

Even though Israeli banks suffered in the financial crisis similarly to banks in Europe and the United States, they have recovered in a much better manner.

Breaking news (photo credit: JPOST STAFF)
Breaking news
(photo credit: JPOST STAFF)
Israeli banks appear more attractive than their foreign counterparts and enjoy a significant advantage over them in developed markets, Meitav Investment House said Thursday, ahead of the release of first-quarter financial reports.
“The performance of the US banking sector hangs on home prices (which began dropping again after a weak recovery), and European banks hang on the ability of the PIGS [Portugal, Italy, Greece and Spain] to manage their debts,” Meitav analyst Terence Klingman wrote in a report sent to the press.
“Therefore, even though Israeli banks suffered in the financial crisis similarly to banks in Europe and the United States, they have recovered in a much better manner. In Israel the credit market continues to grow… so that revenues of Israeli banks are expected to rise more rapidly than those of their counterparts in developed economies, and Israeli banks don’t need to raise capital in order to meet new market demands, unlike banks in Europe.”