Knesset committee orders slash in banking fees

The Parliamentary Inquiry Committee on bank fees recommended in its final report released on Tuesday that the Bank of Israel create a benchmark to measure bank fees as well as order the country's largest banks to reduce fees for individuals and small businesses.

By MATTHEW KRIEGER
June 20, 2007 08:09
1 minute read.

 
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

The Parliamentary Inquiry Committee on bank fees recommended in its final report released on Tuesday that the Bank of Israel create a benchmark to measure bank fees as well as order the country's largest banks to reduce fees for individuals and small businesses. The committee, chaired by MK Moshe Kahlon, noted in its report that the Supervisor of Banks at the Bank of Israel would publish the benchmark on a quarterly basis in order to allow customers to make informed decisions about their banking needs as well as increase competition between the banks in the household sector. In a speech to the inquiry committee earlier this month, Bank of Israel Governor Stanley Fischer said that the reason for the low competition in Israel's banking sector was that a limited number of banks captured the market, making it very difficult for smaller banks to expand their customer base and almost impossible for foreign banks to break into the household sector. The committee's report also stated that the Bank of Israel should consider banning fees on exchange rate-related transactions such as deposits, loans and currency conversions, and it instituted mechanisms to facilitate the account transfers between banks. In addition, the panel recommended a publicity campaign to inform the public of the new standards. The committee also suggested that the Postal Bank be converted into a proper bank, and that banks be forced to sever ownership relations with credit card companies.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

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

By GLOBES, NIV ELIS