What are the lessons of the crisis for the regulation of the local banking sector?
The general complaint from the bankers is that they have been overregulated. I think at this time the fact that the regulation of the Israeli banks is pretty strict has actually proven to be a good thing and is appreciated rather than regarded as being a problem. We have the recent international report of the CRMPG (Counterparty Risk Management Policy Group), which came out on August 6 providing recommendations of external and internal changes to risk management. We will draw those conclusions and we will apply them. For instance, there is a general desire for a liquidity ratio. We will be learning things, but I don’t think there is a particular need to strengthen our supervision at this moment. We will keep following very closely what is happening in the banking system. What about supervision of the non-banking sector? We are working very closely with the Treasury on the entire financial system and our cooperation is very good, but we respect the relevant areas of competence. There ha
