Uriel Dagan, CPA, MBA
\nThe recommendations of the Zaken Committee (2013) stipulated, amongst other things, that alongside
\nthe rating of customer's bank credits, disclosure should be made. These recommendations were
\nbased on the intention to give customers the possibility of conducting a market survey and
\nacquiring credit at a lower cost among many entities, using the rating as a common denominator.
\nAdditionally, the aim was to obtain increased transparency.
\nThis paper, in the first instance, seeks to examine the premise of the committee's recommendation.
\nIn order to examine this, our study looked at a sample of small business owners. Looking at this
\nsample enabled us to firstly calculate their hypothetical personal credit rating. We then went on to
\nexamine whether there exists a correlation between their theoretical credit rating and their current
\nsituation. After examining the premise of the committee's recommendation, this paper also studies
\nwhether the application of a personal credit rating to small business owners in Israel is capable of
\nstreamlining the distribution of credit in the economy.
\nRegression analysis of the sample shows a statistically insignificant result with respect to the
\napplication of a credit rating in a regulatory manner and meeting the regression test. This conclusion is
\nconsistent with previous studies and explains that whilst there exists a positive relationship between
\nthe risk to the bank and the price, there is a statistically significant improvement of the distribution of
\ncredit in the economy. fte findings also show a statistically significant result whereby the application of
\ncredit ratings does not lower the already low credit prices, and will not necessarily increase the already
\nlarge supply of credit. In addition, the findings show that the application of credit ratings may have
\nserious consequences for the individual lives of citizens of the country. This paper explores these
\nfindings in more detail and will, in turn, make recommendations based on them.
\nUriel Dagan, CPA, MBA, Chief Financial Officer, Tower of David \u2013 Museum of the history of
\nJerusalem<\/p>\n","protected":false},"excerpt":{"rendered":"
The recommendations of the Zaken Committee (2013) stipulated, amongst other things, that alongside the rating of customer’s bank credits, disclosure should be made<\/p>\n","protected":false},"author":1,"featured_media":193,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\n