Flug's successor still unknown, but decision was not impacted by uncertainty, she said.
Flug notified Prime Minister Benjamin Netanyahu of her decision on Thursday, according to a statement from the central bank.
A Finance Ministry spokesman said the hunt for a new Bank of Israel governor would begin after Passover.
Having a Swiss bank account is not illegal in Israel as long as it is reported to authorities and taxes are paid.
Proposal would spin credit card companies out from biggest banks, allow them to become banks in their own right.
The card features a centuries old trope of the hook-nosed Jew, wearing a kippah and a prayer shawl, rejoicing against the backdrop of gold coins.
New exhibit: Facing the British Lion — With Nothing but a Pencil
One of the Bank of Israel's new regulations includes not charging customers who deposit bad checks, as well as not allowing banks to charge customers for debit cards.
Kahlon: We know that there’s a balance you have to strike between competition and stability.
The BoI deserves unstinting support for at least trying to break the vicious cycle of rising real estate prices and low interest rates.