Regulators עברית

Bank of Israel

The Bank of Israel is the central bank of Israel, established in 1954, responsible for monetary policy, price stability and supervision of the banking system.

The Bank of Israel is the central bank of the State of Israel, headquartered in Jerusalem. Established on 24 August 1954 under the Bank of Israel Law, it is responsible for monetary policy, price stability, issuance of the new shekel, and supervision of the banking system.[1]

History

Before 1954, central-banking functions in Israel were performed by Bank Leumi, which issued currency and managed the state's accounts. The Bank of Israel took over these functions upon its establishment in 1954.[1] The Bank of Israel Law of 2010 formalised the bank's independence and established a Monetary Committee headed by the Governor to set the policy interest rate.[2]

Functions

The bank's primary objective is price stability, defined as an annual inflation target of 1 to 3 percent set by the government. Additional goals include supporting employment and growth, and maintaining the stability of the financial system. Its Banking Supervision Department licenses and supervises commercial banks including Bank Leumi and Bank Hapoalim.[1]

Relationship to other regulators

While the Bank of Israel supervises banking, capital markets are regulated by the Israel Securities Authority, and long-term savings products such as Keren Hishtalmut funds are supervised by the Capital Market, Insurance and Savings Authority.[3]

Sources

  1. [1] Bank of Israel — official site (English) — Bank of Israel Primary source

    Cited for: Established 24 August 1954; responsible for monetary policy and banking supervision

  2. [2] Bank of Israel — Wikipedia

    Cited for: Bank of Israel Law 2010 formalised independence and created the Monetary Committee

  3. [3] Israel Securities Authority — ISA Primary source

    Cited for: Capital markets regulated by the Israel Securities Authority