[Avodah] What am I missing?

[Marty Bluke via Avodah]

R' Ben Waxman asked:
> Re prozbul, I seem to be missing something. Personally I haven't loaned
> out any huge sums such that if I don't get them back, I would  be
> reticent about loaning in the future. If I did loan out something small,
> why should I sign the prozbul?

If you have money in the bank in Israel then you have lent the bank money
and therefore Shemitta will cancel your loan and the bank could keep your
money. Now, the fact is that all the banks in Israel have a hater iska so
that they can pay interest, but even with a heter iska half the amount is
an iska but half is a loan, so the half that is a loan would be cancelled
by shemita.