 During the years following the establishment of the State of Israel, the governments used the banks as a channel for procuring capital, and instructed them on how to invest their funds.This level of control, coupled with the control of interest rates, allowed the government to effectively "print money", by getting the banks to buy government bonds.Additionally, the banks usually assumed that since their investments and loans in major players of the Israeli market, such as the kibbutzim, were according to the government's wishes, the government would guarantee these loans.