In an interview on Israel TV’s Channel 14 “Main Edition” Newscast, Ono Academic Professor Yaron Zelekha addressed the recent failure of Silicon Valley Bank (SVB) and US President Biden’s commitment that the savings of American taxpayers would be safeguarded. Prof. Zelekha is President of Ono Academic College’s Higher Academic Council and Director of Accountancy Studies. From 2003 – 2007, Prof. Zelekha completed a full term as the Accountant General of the State of Israel.
Zelekha noted that as the first US bank to fail, SVB got lucky because the US still has the resources to bail out its customers. This might not be the case if other US banks collapse. He added that the US government had a hand in SVB’s fall. In contrast to American banks, Zelekha said that Israeli banks are not allowed by their regulators to take nearly as many risks. For this reason, he doesn’t believe Israeli banks are in danger. In the near future, he predicted that in Israel, interest rates would rise but at a slower pace.
To listen to the whole interview, click here: