On July 29, 2020, the Supervisor of Banks, Mr. Yair Avidan, presented the Semiannual Report on the Prices of Common Banking Services for Households to the Knesset’s Economic Affairs Committee. The report is based on the reports of the banks and credit card companies of actual income from fees collected during 2019.

 

Main points of the report:

§  During the past eleven years, there has been a decline of about 34 percent in the share of the banking system’s income derived from fees out of total assets. The decline is attributed to a range of regulatory measures taken by the Banking Supervision Department and the banking system during this period, as well as accounting effects from the sale of Isracard and Leumi Card (Max) by the banks as part of the implementation of the Reducing Concentration and Promoting Competition Law, 5777-2017.

§  The average monthly cost for a household or private banking account in 2019 was NIS 26.9. During the past nine years (2011–19) there was a decline of approximately 17 percent in the average monthly cost for a household or private banking account. This cost is comprised of:

-          The cost of current-account activity, which decreased by a total of approximately 39 percent;

-          The cost of credit cards, which increased by a total of approximately 21 percent. The increase is attributed to the increase in credit card fees, to the trend of a growing number of credit cards held by customers per account, and an increase in the volume of foreign currency transactions and withdrawals.

§  A significant measure that went into effect in August 2019 is proactive enrollment of small businesses and authorized businesses in the basic or extended fee tracks service, whichever is the most worthwhile for them. The measure is expected to contribute to a reduction in current account fees for small businesses and authorized businesses.

§  Since the period covered by this report is 2019, the presented data do not reflect the effects of the coronavirus crisis.​