By the authority of the Increasing Competition and Reducing Concentration in the Banking Market Law, a Committee to Examine Competition in the Credit Market was established.  The Committee is entrusted with monitoring the implementation of the provisions of the law and recommending measures to improve and increase competition in the credit market; conducting periodic examinations of the state of competition in the credit market and identifying barriers to the development of competition in that market; and making recommendations to the Minister of Finance and to the Governor of the Bank of Israel regarding the use of authorities to separate Cartisey Ashrai LeIsrael – CAL from Bank Discount.


Ministry of Finance Director General Shai Babad and Head of the Bank of Israel Research Department Prof. Nathan Sussman, joint Chairmen of the Committee, published the criteria by which the success of increasing competition in the financial market will be determined for public comments, in order to involve the public in the process and to improve the Committee’s work.  Based on these criteria, the Committee will write a semi-annual report that will be submitted to the Knesset Economics Committee.


The examination of the competitive state of a certain market is a complex examination, which requires that attention be paid to many components.  The Committee proposes to monitor a large number of criteria, including criteria for the removal of entry barriers and barriers to moving customers, criteria examining the entry of new competitors and customer activity, criteria for the distribution of market segments and concentration levels, and criteria for changing prices or quantities in the credit market.


In order for the public to be able to express is positions, a draft of the criteria has been published on the Ministry of Finance website, so that anyone interested can read the criteria document and, if necessary, submit their position in writing (not more than 3 pages) to Itzik Daniel by email at t until May 23, 2017.