BoI stops Hapoalim CEO appointment

Israel's central bank freezes Zion Keinan's replacement of Zvi Ziv in order to assess decision.

By
March 30, 2009 13:43
1 minute read.
bank poalim 88 298

A Bank Hapoalim branch 248.88. (photo credit: Ariel Jerozolimski)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Israel's banking watchdog has blocked the appointment of a new chief executive at the country's largest bank - an extraordinary intervention reflecting the turmoil roiling the global financial industry. Bank Hapoalim said in a statement to regulatory authorities Monday that the Bank of Israel's supervisor of banks ordered the appointment be held up so he could assess the decision-making process. In a letter Sunday, banking supervisor Rony Hizkiyahu instructed Hapoalim "not to move ahead with the board's decision to appoint a new CEO until he finishes investigating the matter," Bank Hapoalim said. Hapoalim had no comment on the central bank's concerns. Zion Keinan was tapped to replace Zvi Ziv, who announced last week he would resign because of disagreements with Hapoalim's chairman, Dan Dankner, over the bank's future. A Bank of Israel spokesman did not immediately return a call seeking comment. Economic commentator Nehemia Shtrasler said the central bank has been worried about developments at Hapoalim "for a long time," including a 2008 write-off of more than $1 billion because of the bank's exposure to U.S. mortgage-backed securities. The Bank of Israel "is worried about risk management at the bank," said Shtrasler. "The question is whether Zion Keinan is the most appropriate person. He doesn't have a wide-ranging background in credit and investment risk management." Hapoalim, like other banks, will have to restructure loans taken by major debt-holders, Shtrasler added. "And there is a lot of fear (at the Bank of Israel) that Mr. Keinan doesn't have the appropriate experience." Keinan is currently head of Hapoalim's corporate banking division and deputy CEO since January 2006. The bank is owned by a group led by billionaire Shari Arison.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS