Bank of Israel fears the increase in current account fees - and is trying to preempt a remedy
Posted on Aug 9, 2022 by Ifi Reporter
The Bank of Israel fears the increase in current account fees - and is trying to preempt a remedy for the blow: the Banking Supervision Department has published for public comment a draft of a supervisory order on basic current account fees with the aim of freezing the existing price level. Now it is about the intention of soft supervision - without setting a maximum price.
The bank already supervises the "basic route service" (a package of basic services discounted at a price of up to NIS 10) and even set a maximum price for it: NIS 10. In the current case, the bank also wants to supervise "operation by a clerk", "operation through a direct channel", "extended route" and "extended route plus", when this time, the current supervision does not set a maximum price, but does determine the existing situation and freeze it.
Any change that the banks would like to make in the commissions - will have to go through the Bank of Israel and not just as a report as they are obliged to do today, but the bank will have to submit a reasoned request for the increase it is requesting and wait for approval from the Bank of Israel for the change.
The Bank of Israel began to recognize a trend of rising prices. The services were established in 2008 and since then their prices have not changed. Then, last year, price increases began: Bank Hapoalim increased the direct fee by about 30% from NIS 1.35 to NIS 1.75 and reduced the clerk's fee (the least common) by about 18% from NIS 6.5 to NIS 5.3.
Bank Leumi will increase the price of the extended route (a route that includes a fixed payment for a large number of operations) by 25% from NIS 20 to NIS 25.
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