A significant step for businesses in Israel: The Knesset approved the establishment of a credit data registry
The Knesset approved overnight in the second and third readings the bill for the establishment of a new credit data registry for the business sector in Israel. This is an initiative aimed at improving business owners' access to financial services and increasing competition in the credit market.
The new registry will consolidate comprehensive financial information on small and medium-sized businesses operating in the economy. The information will include data on the businesses' financial conduct, which will allow lending entities, such as banks and credit companies, to assess their risk level more accurately and quickly.
According to supporters of the law, the move is expected to make it easier for small businesses to obtain loans under more favorable terms. Today, many businesses struggle to raise financing due to a lack of available and transparent information for lenders. The new registry is expected to change this situation and provide businesses with better tools for growth.
In addition, the new system will encourage competition among financial entities, as they will be able to offer personalized proposals to each business based on its credit data. This may lead to lower credit costs for business owners and a reduction in bureaucracy in the loan application process.
The establishment of the registry is part of a broader government move to strengthen the business sector and the Israeli economy. The law is expected to come into effect in the near future, following the completion of the technological and regulatory preparations required to operate the new system.