Jerusalem, 26 May, 2026 (TPS-IL) — The Knesset’s Economics Committee approved the Ministry of Finance’s bill to establish a credit data database for businesses, as a key part of increasing competition in the credit market and reducing the cost of living in Israel.
The bill, which was initiated and led by the Ministry of Finance in cooperation with the Ministry of Justice and the Bank of Israel, is intended to deal with a structural failure in the credit market for small and medium-sized businesses, which is reflected in the high dependence of businesses on banks. Today, approximately 92% of small and medium-sized businesses take credit from banks and 83% from the specific bank where their account is held. This situation reflects the phenomenon of a “captive customer” and leads to higher financing costs.
The establishment of the database is expected to bring about a significant change in the market by making reliable financial information available to additional credit providers, thus enabling faster and more accurate underwriting, expanding the range of credit providers and offerings, and reducing financing costs for businesses.
According to estimates, the move is expected to result in savings of at least 1.5 billion Shekels per year for small and medium-sized businesses, savings that will be passed on directly to the general public and contribute to lowering the cost of living.