Mizrahi Tefahot Bank (TASE:MZTF) has begun offering mortgages to the customers of its Swiss subsidiary UMB Switzerland that buy real estate in Israel. The bank's customers, mainly wealthy Jews from Europe and Latin America, take the mortgage from the Swiss subsidiary against Israeli property.
Mizrahi Tefahot is Israel's largest bank in the mortgage sector with a 30% market share. As far as is known, it is the only Israeli bank allowing its customers to take a mortgage abroad against a property in Israel. Eldad Fresher recently became the bank's CEO.
UMB Switzerland deals mainly in private banking but recently decided to expand its services due to the demand from customers for buying Israeli real estate.
UMB Switzerland's credit portfolio totaled 53 million Swiss francs at the end of 2012 so that entering the mortgage market will provide major potential for growth.
Published by Globes [online], Israel business news - www.globes-online.com - on December 16, 2013
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