The Supervisor of Banks urges banks' management to act sensitively in debt collection process

The Supervisor of Banks, Yair Avidan, approached the banks' management, urging them to act sensitively in the debt collection process towards clients who had difficulties following the Corona crisis. Avidan did not want to rush to legal proceedings but rather to reach an agreement with the client.
"Banks must continue to act responsibly, while still demonstrating fairness, flexibility and sensitivity to their customers, and strengthen the role and place of the banking system as part of its economic and social fabric," Avidan wrote to the banks.
Avidan offers banks preferable use of other tools in the world as well, including extending debt service schedules on routine days, proactively addressing customers who are in arrears within a short period of time to look into assistance options, offering convenient payment arrangements, providing relief on arrears and interest rates, debiting repayment periods Longer and longer.
In this context, the Supervisor urges banks not to rush and resort to legal proceedings in order to collect debt from clients who have difficulties:
Avidan noted that while the economy is beginning to return to normal after most of the restrictions have been removed, he said: "The Corona crisis has not yet ended and many households and businesses appear to be affected and will continue to be affected by the crisis, even in the short and medium term.
"Given the high unemployment rate and the financial resilience of customers from diverse sectors and industries, these customers face significant challenges, as their income and earning capacity have been significantly impaired and for a long time uncertain."