Magistrate's Court on Friday released Avi Yardeni and Menashe Mizrahi, charged with operating private bank, to house arrest.
Police in the north recently uncovered the operation and received a tip that the partners allegedly intended to abscond from the country with their customers' money - a sum of some NIS 200 million.
Yardeni, 70, from Moshav Kinneret, and Mizrahi, 53, from Tel Aviv
, were reported to have run their business for the last five years, promising customers a higher interest rate than that currently available in commercial banks, Army Radio reported.
The names of 200 customers of the private bank have been discovered.