Strong domestic franchise Strong liquidity Likely government support if needed High, although improving, economic risk in the domestic market (the Israeli economy is concentrated and vulnerable to shocks) Mature domestic market High competition from capital markets Restrictive regulator limits growth Divestment of some operations resulted in some lost opportunities for recurring revenues. Still somewhat weak, but improving, loan quality by international comparison Tight core capitalization given the potential risks of operating 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, loan quality and tight capitalization within a risky operating environment. Ratings are also restricted by the latter's
