Information and Data'; $toptitle1a='Debt and Credit Aggregates'; $toptitle2='Debt and Credit Aggregates'; ?>
Explanatory notes to the new series of debt and credit aggregates
 
The data presented in the two attached tables are important for the analysis of Israels credit trend:
 
Table 1: Borrowers' outstanding debt (credit from the borrowers' point of view) presents an estimate of the outstanding debt of each of the three main borrower sectors of the economy - the nonfinancial business sector (excluding banks and insurance companies), households and the public sector (central government and municipal authorities). Internally, each sectors debt is sorted by lending sectors and types of instruments. Since the debt in this table is presented from the borrowers point of view and its value is independent of market value and lenders book value, the balances of outstanding bonds are shown in the table in face value (accrual) and the balances of outstanding indebtedness to banks are shown before the subtraction of loan-loss provisions.
 
Table 2: Lenders' outstanding credit (credit from the lenders' point of view) presents an estimate of outstanding credit issued by each of the main lender sectors of the economy - banks, credit card companies, institutional investors (insurance companies and provident and pension funds), nonresidents, and others (government, households). The table defines the first two as a financial sector. Internally, credit issued by each of these sectors is sorted by borrower sectors and types of instruments. Since the credit in this table is shown from the lenders perspective and its value depends on market or book value, the balances of bonds are shown in it the table in accordance with market value in the case of tradable bonds and by fair value in the case of nontradable bonds, and the banks credit balances are shown after the subtraction of net loan-loss provisions.
 
In sum, there are two main differences between the tables: 1)in regard to bonds, Table 1 reports face value while Table 2 reports market value; 2)in regard to bank credit, Table 1 presents the parameter before the subtraction of loan-loss provisions and Table 2 presents it net of provisions. Notably, the data in both tables are affected by changes in exchange rates and price indices.
 
Both tables itemize the instruments in the same way. The breakdown includes issue of credit and loans, issues of tradable bonds in Israel and abroad, and private debt issues to various financing entities (nontradable bonds).
 
Both tables present the data in terms of balances at the ends of months in current NISbillions. For the time being, the data begin in December 1999, but we intend to extend the data series backwards in time. The data will be updated in the middle of each month and the most recent statistic shown will be at a lag of about a month and a half.
 
The site provides additional data on credit balances on a quarterly basis from 1999 onward. The data at the site define bonds (at market value) and bank credit (net of loan-loss provisions) in the way they are defined in Table 2 here. The main improvement in the new tables relative to the old data at the site concerns the way the sectors are defined: 1) The data on credit to the business sector at the site include bonds issued by banks and insurance companies, whereas the tables presented here do not include these instruments. 2) The data on directed credit that comes from government sources and is issued by banks are included in bank credit at the old data at the site, whereas here they are included according to source in government credit. 3) The data on credit to municipal authorities are included at the site in credit to the business sector, whereas here they are included in credit to public sector, together with central government.
 
Questions and clarifications to these tables, please address to Michal Ohana at michal.ohana@boi.org.il, or to Shelly Reiss at shelly.reiss@boi.org.il
 
  Tables Excel
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Table 1 Borrowers' outstanding debt (credit from the borrowers' point of view)
Table 2 Lenders' outstanding credit (credit from the lenders' point of view)