The Bank of Israel has issued a new policy to simplify establishment of a new bank in the country following evaluation of examining models of multiple supervisory authorities around the world.

The new policy, devised to suit the Israeli economy, will enable an interested party to procure a limited bank license in a short period of time allowing it to carry out limited deposit and credit provision activities.

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Under the new process, the applicant can secure limited banking licence within six months from the Bank of Israel.

Upon receiving the limited licence, the applicant can complete the necessary processes including raising capital, recruiting staff, investing in infrastructure following the time frame set and approved by the Banking Supervision Department.

After completion, the applicant will receive a permanent license.

The Banking Supervision Department has formed a new Licensing and New Banks Unit which will be responsible for evaluating the bank licence applications, assist the applicants throughout the licensing process as well as monitor the new bank after the issuance of the license.

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Bank of Israel supervisor of banks Dr Hedva Ber said: “The policy we have published is another step on the way to establishing a new bank in Israel and to increasing competition in the banking industry.

“There are already people talking with the Banking Supervision Department, and who are in the process of submitting a request for a bank license.

“This policy joins a series of other actions intended to reduce entry barriers that have been taken by the Banking Supervision Department in order to increase competition.”