Semiannual Report on the Prices of Common Banking Services - First Half of 2018
Main points of the report:
- Over the past 9½ years, there was a decline of approximately 29 percent in the share of fees collected by banks (the ratio of banking corporations’ total income from fees to total activity), with that ratio remaining stable in the past two years. In the first half of 2018, the stability in the ratio continued, similar to 2016 and 2017.
- The average monthly cost for an account for households and private banking, for the first half of 2018, was NIS 24.8, similar to 2017 (NIS 24.6). During the past 7½ years (2011–June 2018) there was a decline of approximately 15.6 percent in the average monthly cost for a household account and private banking account. This cost is made up of the cost of current-account activity, which declined by about 36 percent, and the cost of a credit card which increased by about 31 percent, an increase that derives mainly from the trend of increase in the quantity of cards held by customers per individual account.
- A significant measure that will go into effect this year, is expected to contribute to reducing fees in small business and authorized-business accounts: proactive enrollment in the basic or expanded fee track service, whichever is the most worthwhile for them, pursuant to the requirement of the Banking Supervision Department.
- Within the framework of the implementation of the Reducing the Use of Cash Law, and with the goal of encouraging private customers and small businesses to deposit for custody post-dated endorsed checks, before the Law goes into effect, a supervisory Order was published, which reduces the fee in respect of depositing checks into custody and establishes it at only NIS 2, from April 15, 2019 through July 1, 2019, the day the Law goes into effect.
The Bank of Israel urges the public to consume banking products and services in a wise and informed manner, and invites the public to read the “Banking ID Card” that was issued on February 28, 2019, which presents an overall picture of the account.