Israel Banks Retreat as Central Bank Cautions on Home Prices
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Bank Leumi Le-Israel Ltd. and Bank Hapoalim Ltd. dropped, pushing the Tel Aviv Banking Index to the lowest in almost two months, after central bank Governor Stanley Fischer warned rising home prices may hurt lenders’ stability.
The shares of Leumi, the country’s largest bank by assets, retreated 1 percent to 16.88 shekels at 3:42 p.m. in Tel Aviv, the lowest level since March 15. Hapoalim, the second biggest bank, slid 1.3 percent to 17.04 shekels, the lowest level since March 24. The banking index dropped 0.9 percent to 1,308.05, the lowest since March 17.