Knesset discusses regulating bank commissions

December 11, 2006 12:41


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 analysis 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


The Knesset's Economics Committee was to discuss on Monday several private proposals calling to regulate bank commissions in Israel. According to the proposed bill, the Bank of Israel will be able to prevent future rises in commissions and even to cancel payments already made by bank customers. MK Gilad Erdan (Likud), who is behind one of the proposals, explained that regulation is necessary and did not endanger the free market: "There is no real competition - banks copy one another and raise commissions together - thus forcing the legislating authority to interfere", Erdan said. The bill is the hope of millions of Israeli customers and the nightmare of bank managers. Bank Leumi chairman Eitan Raf compared the bill to Bolshevism. "I think it's a very dangerous situation, which should be prevented by all means," Raf said. Not all bank managers bothered sending a representative to the committee; they were busy preparing for their Tuesday meeting with Stanley Fischer, governor of the Bank of Israel. Fischer is almost the last person holding back the new law proposal, which will be a definite blow for banks, but a victory for their clients.

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