JERUSALEM (AP) — Israeli Prime Minister Benjamin Netanyahu stated Sunday that the government would assess the impact of Silicon Valley Bank’s collapse on Israeli businesses and decide irrespective of whether or not to help them.

Israel is house to a vibrant higher-tech business, and nearby media stated Sunday that hundreds of nearby firms could be exposed to the collapse of Silicon Valley Bank.

Israeli company paper Globes stated the bank was viewed as “the key funding physique for Israeli companies” and that its fall was “closing the oxygen pipe” for the sector.

Silicon Valley Bank, the U.S.’s 16th biggest bank, served mainly technologies workers and venture capital-backed businesses. Its collapse is the largest bank failure because the collapse of Washington Mutual in 2008.

The bank had a branch in Tel Aviv. It was not right away clear how lots of nearby businesses did company with the bank.

Speaking at a Cabinet meeting on Sunday, Netanyahu stated he and senior Israeli officials would contemplate “whether or not actions are needed to help Israeli businesses in distress, primarily with money-flow, due to the collapse of SVB.”

A day earlier Israel’s finance minister, Bezalel Smotrich, stated he formed a group that would track the concern and assess the bank collapse’s influence on Israel’s economy.

Israel’s banking regulator, Yair Avidan, stated that Israel was “closely examining the case and following developments.”

The bank failure came as Israeli tech leaders and economists are warning that the Netanyahu government’s proposed overhaul to the country’s judicial method could drive away investment and influence the economy.

Israel’s currency, the shekel, has dropped in worth more than the previous two months because the government announced its program, in portion for the reason that businesses have transferred funds outdoors the nation for the reason that of issues about the judicial overhaul.

By Editor

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