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The total average cost of unindexed credit
(information received from the largest seven banks)
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According to the Nonbank Loans Arrangement Law, which regulates the granting of credit on the "Gray Market," the maximum cost of such a loan shall be two-and-a-quarter times the average cost of unindexed credit granted to the public by the banks. For this purpose, the Law states that the Bank of Israel shall publish this average cost each month.
According to section 5(a) of the Law, the total average cost of unindexed credit to the public is calculated as the weighted average of the cost of credit in overdraft accounts and in unindexed fixed-term credit in Israeli currency (based on data from the seven largest banks). The cost is calculated in terms of annual effective cost, and includes interest income, credit allocation fee and management fees.
The Bank of Israel is not responsible for any errors in the data presented. For legal purposes, only the data published in the Official Government Notices are applicable.
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Annual rate (percent) |
Official Government Notices reference |
| Number |
Page |
| 2008 |
January |
7.14% |
5804 |
3048 |
| 2008 |
February |
7.14% |
5814 |
3301 |
| 2008 |
March |
6.65% |
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