Israel Launches a Corporate Credit Database to Increase Competition in the Business Credit Market

The upcoming corporate credit database is expected to have a significant impact on Israel’s business credit market and to expand the database that credit providers will use for risk assessments, underwriting, and credit decision-making.

In addition to the potential to increase competition and improve access to credit, the establishment of a dedicated corporate credit database may also pose challenges for financial and other entities in relation to regulatory and operational preparedness, since they will likely be obligated either to report to the database or to rely on the information it collects.

Knesset Approves Amendment to Credit Data Law

On July 16, 2026, the Knesset  approved the second and third readings of the proposed Credit Data Law (Amendment 6), expanding the application of the Credit Data Law, 2016 from individuals to corporate customers.

This important legislative amendment is designed to enable the establishment of a dedicated credit database for corporations, expand the information available in the business credit market, improve credit providers’ risk assessment capabilities, and increase competition in the business credit market.

What Is a Credit Database?

A credit database is a centralized and secure database that collects relevant financial data on borrowers in order to enable credit providers to assess the level of risk involved in providing credit. The database contains information collected from various sources and may include data on credit obligations, repayment histories, and degrees of adherence to repayment schedules.

Highlights of Amendment 6

The amendment establishes a broad statutory infrastructure for the creation of a corporate credit database, to operate alongside the existing credit database for individuals. Within this framework, corresponding adjustments were made to the Credit Data Law’s definitions, sources of information, methods of data use, and supervision and enforcement mechanisms.

Key changes include:

• Establishing special arrangements to protect corporate trade secrets.
• Authorizing the Governor of the Bank of Israel to set rules governing the types of data to be collected about corporations, the sources of information, the information usage restrictions, and information retention periods.
• Expanding potential sources of information, including from relevant public bodies and authorities.
• Regulating the production of credit reports, credit indicators, and credit ratings also in relation to corporations.
• Enabling data about corporations’ stakeholders (such as guarantors, joint borrowers, and controlling shareholders) to also be considered, under particular circumstances.
• Expanding and tightening supervisory and enforcement powers, including the imposition of financial sanctions and the exercise of audit authorities.

Practical Significance for Financial and Institutional Entities

The amendment is likely to have a material impact on financial and institutional entities in two key ways:

1. As users of information, the amendment will significantly expand the volume of information available for underwriting, risk management, and the provision of business credit, thereby improving credit risk assessment capabilities in the corporate sector.
2. As reporters to the database, some entities may be deemed “sources of information” obligated to report regularly to the database. These entities must complete technological, operational, and regulatory preparations, including revisions to systems, work procedures, control mechanisms, and compliance processes.

In addition, the amendment includes changes affecting the existing database for individuals, including a possible expansion of the types of entities that must report to the database, changes to the mechanisms governing consent and use of information, and adjustments to the credit indication mechanism.

Practical Significance for Businesses Applying for Credit

Corporations applying for credit should expect to be affected by the new regulation. The establishment of a dedicated credit database for corporations may expand the volume of information to be used when considering business credit applications, as well as impact the risk assessment and underwriting processes and, accordingly, the credit terms offered to businesses.

When Will the Amendment Come into Effect?

Amendment 6 will take effect six months after its promulgation. However, full implementation of the arrangements for corporations is contingent upon the Governor of the Bank of Israel setting rules, which must be submitted to the Economics Committee for approval within thirty months, with the possibility of extending the deadline by an additional six months.

Therefore, most of the practical arrangements—including the scope of the reporting obligations, the types of data, the conditions governing access to information access, and the manner of its use—will become clear only after the rules are set and approved. Consequently, it will take approximately three additional years before the database is established and begins operating.

Recommendations for Initial Preparations

At this stage, we recommend that relevant entities take the following steps:

• Assess whether they may be included among the entities obligated to report to the database.
• Map operational, technological, and regulatory gaps for the purposes of reporting and using information.
• Analyze the amendment’s impact on underwriting, risk management, privacy protection, information security, and compliance processes.
• Stay updated on developments regarding the setting of rules and the regulatory discussions that will decide the amendment’s actual mode of implementation.

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Adv. Efrat Cohen is a senior partner and head of the firm’s Regulation Department.

Adv. Noy Zilberman is an associate in the firm’s Regulation Department.

Barnea Jaffa Lande’s Regulation Department advises companies, corporations, and financial entities in Israel and abroad on addressing evolving regulatory requirements and embedding them in their business operations. In this context, the department assists clients in examining the implications of legislative amendments on their activities, mapping the relevant obligations and exposures, and preparing for the implementation of new arrangements, including by adapting policies, procedures, work processes, and compliance and control mechanisms. This support is tailored to the characteristics of each organization’s activities and regulatory environment, while integrating legal, business, and operational considerations.