This work documents the creation of the non-bank credit market in Israel and the failures discovered “loud and clear” during the global economic crisis. The work describes the ills characterizing this market, but also indicates that the diversification of credit sources for the business market contributed to the stability of the banks and allowed them to increase capital requirement.

The work relates to the Chodak Committee’s recommendations, examining the contribution of the current pension structure to the stability of the local financial market, and tries to derive lessons from the global crisis and its implications for Israel.

Published as part of a collection of essays – a view of the economic crisis: An Israeli and an international perspective. Economics and Society Program at the Van Leer Jerusalem Institute