The issue of whether Bank of Israel Governor Amir Yaron will seek, or be reappointed for a second term, has loomed over financial markets for months.
Israeli banks may be declared a “concentration group,” leading to the government taking steps toward higher competition in the market.
The bill is set to be brought for a preliminary reading in the Knesset on Wednesday.
With six months until the end of Prof. Amir Yaron's term as Bank of Israel Governor, uncertainty over his replacement could further damage the economy.
Yaron warned that investors may begin to withdraw money and invest it elsewhere as Israel's government pushes ahead with judicial reform.
Once one taboo is broken – that of judicial reforms – it is possible that other taboos will also be harmed, such as the integrity and independence of Israel’s central bank.
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