But, as Stanley Fischer, governor of the Bank of Israel, pointed out to the Jackson Hole attendees, older tools such as margin requirements or maximum loan-to-value ratios could also be used.

However, the profit margin of wheat, rapeseed and pig is low, therefore, the fluctuating of loan rate will do harm to the producers of wheat, rapeseed and pig.

Bank's payoff space shrinks due to the reduced margin between deposit and loan rate which is the major resource of bank's profit.