Israel has eased banks' capital requirements so they can lend more to businesses and households that have been hit hard by a government lockdown aimed at curbing the spread of the coronavirus.
The country's economy has been struggling under increasingly stringent restrictions that have largely confined Israelis to their homes, forcing businesses to close and causing unemployment to rocket.
As a result there has been a large growth in demand for credit in the economy, the Bank of Israel said in a statement on Sunday.