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"The world crisis is not relevant to the conditions of the Israeli economy, and therefore there is no need to take any action because of it," said a very senior official in Jerusalem yesterday. He added there is no agreement between the various regulators on possible steps to deal with the crisis, and any of the reports on planned state actions are irrelevant.

The present crisis is unprecedented, said the senior official, since it affects the trading and commerce between world banks - something which has never happened, since the worldwide system connecting the banks is relatively new, and this is what makes handling the situation so problematic.

However, all the steps taken by central banks around the globe are irrelevant to Israel, said the source, since Israeli banks do not have a joint loaning system. Rather, almost all such activity is directly coordinated with the Bank of Israel. "Israeli banks are still stuck at the stage of riding donkeys," said the official, "and therefore we have been spared dealing with the problem of the traffic accidents of world banks." This also includes the use of securitization; and subprime securities.