Strong domestic franchise Strong liquidity Likely government support if needed International banking network, which diversifies risks of domestic operation High, although improving, economic risk in the domestic market Mature domestic market and high competition from capital markets limits growth Divestment of some operations, driven by the banking authorities' restrictive stance toward the two large banks, resulted in onetime capital gains, but reduce recurring revenues. Weak, but improving, asset quality by international comparison Tight core capitalization given the risky environment and concentrations The ratings on Israel-based Bank Leumi le-Israel B.M. (Leumi) are based on its strong domestic banking franchise and high liquidity. The ratings are constrained by its vulnerable, but improving, asset quality and tight capitalization within a risky operating environment
