Bank of Israel grants MasterCard a permit to hold 10% of the shares of Sheba

The Governor of the Bank of Israel granted MasterCard International a permit to hold 10% of the shares of Sheba, a credit card switch in Israel, after signing a conditional agreement for the purchase of the shares from Bank Hapoalim. By Visa International from Bank Leumi, which was executed at the end of 2018.
In addition, Bank Hapoalim, Bank Leumi and Discount Bank are preparing for an offer to sell by way of a public issue, which will lead to further reduction of holdings of the ownership banks by the Company. The Bank of Israel is accompanying the change in ownership to ensure that it is implemented in a manner that will maintain the stability of the system and will support the promotion of competition. Among other things, the Bank of Israel demanded that the appointment of internal directors to the Company be made by the general meeting after the expected issuance process, in order to enable the new owners to influence the composition of the board of directors.
In accordance with the Law for Increasing Competition and Reducing Centralization in the Israeli Banking Market, 2017, the banks must reduce their holdings in SABB, so that it will not exceed 10% of a single bank. The bank also stipulated that the bank would be able to provide services to non-bank entities such as new players In the area of ​​issuing or clearing a debit card, as well as new players in the payment worlds.
Supervisor of Banks, Dr. Bar: "The payments market is undergoing and is expected to undergo major changes in the coming years. The entry of two international companies specializing in the world of payments into the ownership of the ABS - the credit card switch of the State of Israel - constitutes a significant expression of international confidence in Israel's payment market and will enable the introduction of knowledge and assimilation of innovation in the market. In the coming years, following the separation of the credit card companies from the large banks, the change in the ownership of ABS and the progress of the implementation of the advanced payment system (EMV), households and businesses are expected to benefit from a more innovative, more advanced, more competitive and diversified payment market. "