A significant step for businesses: The Knesset approved the establishment of a credit data registry
The Knesset approved tonight in its second and third readings an important new bill aimed at establishing a credit data registry for businesses in Israel. The new law is expected to change the way banks and financial institutions evaluate the status of small and medium-sized businesses in the country.
The new registry will centralize comprehensive financial information on businesses, which will allow lending institutions to get a clearer and more accurate picture of their economic capacity. Until now, many small businesses found it difficult to prove their financial reliability to banks, which made it hard for them to obtain loans under favorable conditions.
According to estimates, the move will increase competition in the business credit market. When information is more transparent and accessible, banks and credit companies will be able to offer lower-interest loans to businesses that are in a good financial position, thereby helping them to grow and develop.
In addition to improving access to credit, the registry is expected to reduce risks for lenders. The centralized information will allow for the rapid identification of businesses that are struggling to meet their obligations, which will help maintain the stability of the financial system in Israel.
The new law is considered a significant step toward strengthening the business sector in Israel. Many business owners hope that the move will reduce bureaucracy and allow them to obtain the funding they need to continue operating successfully in the local market.