Israelis transfer $500 million to banks overseas in Q1

Individual financial investments and accounts in overseas banks came to $500 million in the first three months of the year, TheMarker has learned.

The volume is higher than capital market sources had estimated until now. The transfer of money overseas increased after lending rates were cut 2% last December, and due to the escalation in the fighting between Israel and Palestinians.

Some $410 million was transferred overseas by opening accounts in foreign banks operating in Israel. Financial investments by individuals, such as acquisition of securities, came to $90 million. Individuals transferred $120 million overseas in January in order to open accounts in foreign banks. In February this transfer of capital grew to $200 million, moderating in March to $180 million.