The Antimonopoly Authority has recognized five Israeli banks as a collective monopoly

The decision, which was preceded by a review lasting more than two years, gives the head of the department, Michal Cohen, the authority to issue orders and impose restrictions on the activities of these banks in the field of work with households and small businesses.

By law, the head of the department is obliged to consult with the Bank of Israel before taking such measures, but is not obliged to take its position into account.

The Bank of Israel stated its disagreement, insisting that “recognizing banks as a collective monopoly is an extreme and disproportionate measure, which, on the one hand, can scare investors away from operating in Israel, and on the other, is unlikely to lead to any improvement in customer welfare.”

As a result of the decision, the department intends to focus on the area of ​​deposits and introduce regulations that will come into force in about a year. One of them will prohibit price discrimination in relation to deposits: banks will not be able to offer more favorable conditions to customers depending on the availability of certain products – only the rate publicly posted on their website.

Additional measures relate to expanding access to funds: banks will be required to offer customers interested in deposits the opportunity to save through these funds, as well as to be proactive and approach customers close to decision points about extending or repaying a deposit. It will also facilitate the transfer of deposits from bank to bank.