Eitan Peled
The purchasing group has unique characteristics that distinguishes it from companies or individuals operating in the
real estate market, and the Bank of Israel and the banking system must take into account these differences and provide the
Group with financing based on an analysis of risks deriving from the characteristics and nature of the purchasing group.
Bank of Israel guidelines for financing the purchasing groups, and an analysis of the banks' approach to financial
accompaniment of purchasing groups should be reconsidered.
This article has raised many aspects that deserve attention from the banking system, which can change the business
vision of financing purchasing groups.
The article points to the possibility that institutional investors and non-bank financing entities, which currently refrain
from financing purchasing groups, may find that the levels of financial risk are lower than previously estimated and that
the tools at their disposal to secure their investment are better and stronger than those in many other real estate sectors
in which they operate.
Comparing the financing of purchasing groups to finance construction projects entrepreneurs / contractors shows that
the banking system adheres to the procedures and guidelines of the Bank of Israel without examining them on a case-
by-case basis. An analysis of the factors that affect the financing risks of the purchasing group, compared to financing
construction projects by entrepreneurs or contractors, shows that in many parameters, and more significant there is an
advantage for purchasing groups over entrepreneurs/ contractors or individuals who purchase a residential apartment
(Taking a mortgage).