due to the significant operating and collection costs and because israel does not have a developed securitization market, which would allow the expansion of credit while continuing its operation by banks, who have a structural comparative advantage in this market. by using the securitization tool, credit providers who are not necessarily financial companies will be able to sell credit portfolios that have already been extended and to use the compensation in order to extend new credit. the securitization market will thus help in reducing the costs of sources of financing and in dispersing the risks in the economy. this is a tool that bridges between the money that is held by the various entities and the credit consumers in the economy. securitization allows the expansion of institutional investors ’ investment horizons, and allows the freeing up of capital and the managing of duration in the banking system. as i noted, developing the securitization market will lead to a broader dispersion of the risks in financial markets, and to an increase in the accessibility to sources of financing for entities that are not “ classic ” credit providers. thus, for example, it will be possible to securitize a range of asset - backed flows — such as commercial loan payments, debts from credit card transactions, municipal taxes, leasing, etc. as such, securitization is an extremely important tool for the development of the capital market in israel, particularly in the current period of crisis, and the development of the economy on the day after. in order to advance this, an appropriate legal, tax, regulatory, and accounting infrastructure for carrying out securitization transactions in israel needs to be set up. as i have mentioned in the past, another area in which the bank of israel is working to develop and institutionalize is the telbor interest rates as benchmark rates for shekel interest. these interest rates allow the use of not only a fixed nominal interest rate or daily variable rate, but also an interest rate that changes over longer and predefined periods of time. they make up an important and central pillar in capital markets around the world, and with their help it will be possible to increase the financing possibilities for the business sector. benchmark interest rates also serve as an infrastructure for forward interest - rate contracts, contracts that make it possible for companies and the public to reduce interest rate risks. it is reasonable to assume that within the framework of an efficient telbor market, financial companies will have the opportunity to hedge and better

a faster payment infrastructure that will make it possible to expand the range of payment possibilities in the payment system and to carry out, among other things, direct payments from a customers ’ account, conveniently and efficiently 24 hours a day, every day. promoting a faster payment system will reduce transaction costs, allow cross - border settlement, increase businesses ’ liquidity, and will reduce the use of cash. in addition, the bank of israel is examining additional steps to promote innovation and efficiency of the payment system in general, and of faster payment in particular. this is with an emphasis on the following issues : cross - broder payments, integration of electronic wallet payments, regulation of the execution of payments at businesses, and more. another project that the bank is promoting is open finance i would like to emphasize that from my perspective, its “ open finance ” and not “ open banking ”. the idea is to take away the control of customers ’ information and financial activities from the traditional financial entities and not just from banks, and to transfer the power to the customers themselves. we support promoting an “ open financial world ” which will include all the creators of all financial products. behind the scenes there will be a uniform api standard, which the bank is now promoting energetically, and that will allow a secure way to transfer customers ’ data from the customer ’ s service provider to a third party — such as another bank, a nonbank entity, a fintech company, etc. the advantages of this process are : strengthening the customer ’ s control over information about him or her, enhancing competition in the area of financial services, comparing costs, providing financial value proposals and financial intermediation, consulting on financial conduct, initiating financial activities, and more. in this regard, it is important for there to be access to all the financial players — to all the required information, as is generally accepted worldwide. these entities will be able to provide information and to offer advanced services. an additional issue that we are promoting is securitization a securitization transaction is one in which a corporation issues bonds whose maturity is secured by expected cash flows. while around the world the securitization market is about as 2 / 4 bis central bankers'speeches large as the corporate bond market, in israel this market is tiny and its value is only several billion shekels. this is, among other things, due to the lack of an appropriate regulatory infrastructure. the ability of the various entities to extend credit directly is limited,