Israeli Non-Housing Consumer Credit Surges to 260 Billion Shekels in Q2 2026
Bank of Israel data shows Israeli consumer credit surged by 3.6% in the second quarter of 2026, reaching 260 billion shekels as borrowing accelerated across banks, credit cards, and institutional lenders.
Data from the Bank of Israel points to a significant shift in consumer behavior regarding household borrowing. In the second quarter of 2026, a sharp increase was recorded in non-housing debt, representing consumer credit. This debt balance surged by 3.6% within three months, meaning Israelis took on roughly 9 billion shekels in consumer credit in a single quarter, pushing total non-housing debt to approximately 260 billion shekels.
Trends in Consumer Borrowing
This marks a notable departure from the preceding two quarters. At the end of the fourth quarter of 2025, the non-housing debt balance stood at 250 to 251 billion shekels, reflecting an increase of about 4 billion shekels or 1.6%. During the first quarter of 2026, the trend plateaued as the debt balance hovered around 251 billion shekels, registering a slight decline of 0.1% according to the Bank of Israel. The turning point arrived in the second quarter with the aforementioned 9 billion shekels surge.
Annual comparisons also highlight accelerating credit volumes, with the annual growth rate of non-housing debt reaching approximately 10% at the end of June. This compares to just 5.7% at the end of the first quarter and roughly 6% at the close of 2025. Consequently, the growth rate of non-housing credit surpassed that of housing debt, which registered an annual growth rate of about 7%.
Sources of Household Credit
Detailed figures from the Bank of Israel indicate that traditional banks remain by far the primary source of credit. At the end of the second quarter, non-housing debt owed to banks totaled about 181 billion shekels, compared to 177 billion shekels in March and 179 billion shekels in December 2025. Thus, bank-issued non-housing credit expanded by roughly 4 billion shekels in the second quarter alone, accounting for about 70% of total household non-housing debt.
"The expansion in household credit reflects a renewed appetite for consumer borrowing across multiple financial institutions, outpacing the growth seen in the mortgage sector during the same period."
Growth was not confined strictly to banks, however. Credit card company debt balances climbed from roughly 45 billion shekels at the end of 2025 and the first quarter to about 48 billion shekels in June, representing a 3 billion shekels quarterly jump. Institutional bodies also saw non-housing debt expand from roughly 25 billion shekels at the end of 2025 to 26 billion in March and 28 billion shekels by June. Overall, household debt reached approximately 935 billion shekels by the end of June, marking a quarterly increase of about 22 billion shekels.
