Supervisor of Banks Daniel Hahiashvili: “The Banking Supervision Department is working hard to increase fairness in the bank-customer relationship, and places great importance on maintaining the rights of bank customers, including the provision of available, accessible, and convenient service.  In view of the importance that the Banking Supervision Department ascribes to the connection with the public and increasing transparency, we are today publishing a call for comments to enable the public to discuss the criteria considered when examining banks’ requests to close permanent branches.”

An amendment to the Banking (Licensing) Law, 5741–1981 that took effect on August 16, 2016 sets out that closing a permanent bank branch will require approval from the Supervisor of Banks.  On July 25, 2024, a further amendment to the law took effect, setting out that the Supervisor’s decision on a request to close a permanent branch would be made following consultation with the Licensing Committee.

In this framework, the Banking Supervision Department carefully examines requests to close branches, with the aim of minimizing the potential harm to customers.  The attached document provides the public with a set of criteria that the Banking Supervision Department considers during the process of examining banks’ requests to close permanent branches, including:

  • The alternatives offered for the continued provision of service;
  • The reasonability of the distance between the closing branch and the receiving branch;
  • Customer characteristics;
  • Characteristics of the specific branch’s surrounding area;
  • And more.

 

We invite the broad public to respond and share with us their comments regarding the criteria listed in the document.

 

Please send comments by email to Pikuah_directive_drafts@boi.org.il with the title: “Criteria for examining banks’ requests to close permanent branches”, by January 22, 2025.

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