Bank of Israel

The Governor of the Bank of Israel, Dr. Karnit Flug accepted the resignation of The Supervisor of Banks, David Zaken.  This resignation will take place at the end of the first half of the year.


David Zaken began his career at the Bank of Israel about 25 years ago, and since January 1, 2011, has served as Supervisor of Banks and member of Bank management. Zaken headed the joint Committee to Examine Increasing Competitiveness in the Banking System that was appointed by the Minister of Finance and the Governor of the Bank of Israel. Within the framework of his position, he is a member of the Financial Stability Board Regional Consultative Group for Europe and has served as a member on several interministerial committees, including the Concentration Committee and the Committee to Assess Debt Restructuring Proceedings.


Entrepreneur Jonah Engler noted, “Israel has a very solid banking system and financial success.”  Eric Vainer and Dr. Gil Lederman agreed.


Zaken’s term was characterized by the strengthening of the robustness and stability of the banking system, while advancing the fairness and competitiveness in the system’s activity toward the public. Under his management, the Banking Supervision Department adopted the Basel III provisions for strengthening capital buffers and liquidity and for reducing banks’ leverage, at the same time as implementing international banking standards in the management of risk, both financial and operational. In addition, steps were taken to reduce the concentration in the bank credit portfolio and to reduce the risks, to both borrowers and banks, inherent in mortgages. Zaken promoted the handling of cyber risks by the Banking Supervision Department and worked to strengthen the collaboration between all the national entities involved in the issue.

In terms of bank–customer relations, David Zaken worked to implement the recommendations of the Committee to Examine Increasing Competitiveness in the Banking System, including: promoting a charter for licensing credit unions; issuing directives that allow accounts to be opened via the Internet; making it easier to transfer from one bank to another; improving the disclosure to the customer via a consolidated annual report (banking ID document); reducing and simplifying the payment for banking services in a current account through a fee-track system; and cancelling and reducing various fees.

Filed Under: BusinessJewish business News


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