Jerusalem, 21 September, 2025 (TPS-IL) — The Bank of Israel reported that, in the second quarter of 2025, the balance of nonfinancial private sector debt (both business and household) increased by approximately 2.1% to a level of 2.3 trillion Shekels ($690 billion). The annual growth rate of outstanding debt increased to about 8.2%.
The balance of business sector debt increased by about 2.6 percent (about NIS 36 billion) during the second quarter, to about NIS 1.5 trillion. This was mainly due to net debt raised via bank loans.
The balance of household debt also continued to increase during the quarter, to about 866 billion Shekels ($260 billion), mainly due to a combination of an increase in the balance of housing debt – by about 12 billion Shekels ($3.6 billion) 2% – which was due to new mortgage volume from banks, and a decline in the balance of nonhousing debt – 1.4 billion Shekels ($420 million) 0.6% – for the first time since the last quarter of 2023, 236 billion Shekels ($70 billion), as a result of a decline in the balance of debt to banks and to credit card companies.