Offices of the Bank of Israel​

​According to the Bank of Israel Law, the following entities can open an account at the Bank of Israel:

1.The Government;
2. A "financial entity" as defined in the Bank of Israel Law, including a banking corporation;
3. Central Banks, Monetary Authorities and Foreign Banks, as decided by the Governor and with the approval of the Monetary Committee.

Customers and private entities in the State of Israel cannot maintain a bank account with the Bank of Israel.

The Banking and Financial Services Unit in the Bank of Israel Accounting Division manages activities in shekel and foreign currency accounts for the Government and its budgeted units, and provides banking services to the Government.

In addition, the banking corporations in Israel manage current accounts and loans and deposits of various types at the Bank of Israel - in shekels and in foreign currencies. Various financial entities also receive banking services from the Bank of Israel.

1. Current account management - ongoing management of banking activity in accounts, including monitoring and control;

2. Foreign currency transfers to beneficiaries in Israel and abroad;

3. Shekel transfers through the various clearinghouses;

4. Payments and receipts in shekels and foreign currency through physical checks;

5. The purchase and the sale of banknotes in shekels and foreign currency in cooperation with the Bank's Currency Department;

6. The production of daily account statements, balance confirmations and various reports;

7. Current and updated information through a designated computer system;

8. Interest rate calculations on customer balances.

​The unit provides banking services to central banks and to foreign financial entities in accordance with Section 50 of the Bank of Israel Law: "The Bank may maintain accounts for banking corporations and other financial entities, and, at the decision of the Governor, with the approval of the Committee, for central banks, monetary authorities and foreign banks, all under terms and conditions to be determined by the Governor, including the collection of management fees and commissions or other fees and commissions".​

​Similar to commercial banks in Israel, the Banking and Financial Services Unit represents the Bank of Israel and its customers as a participant in the payment and clearing systems in Israel. The following are the various types of the clearinghouses:

The “MASAV” Clearinghouse - an entity in which the nonpaper or cash interbank transactions are settled. Nonbank institutions and/or organizations also transfer authorized credit and debit instructions directly through “MASAV”. 

The Checks (Paper-Based) Clearinghouse - Most of the receivables (checks and credits and various debits and charges) presented by the banks in the Paper-Based Clearinghouse are checks, which are now presented only by electronic means. The clearinghouse also settles magnetized collection vouchers and nonmagnetized receivables (manual receivables). 

he “ZAHAV” Clearinghouse ​(Real-Time Gross Settlement - RTGS) – The “ZAHAV” Clearing House is a payment system that allows immediate and final transfer of funds between customers of banks and customers at other banks. In addition, the final settlement of all existing interbank payment systems, i.e.: the TASE Clearinghouse, “MASAV” and the Checks Clearinghouse is carried out in this system.

As the Bank of Israel's representative, the Banking and Financial Services Unit is responsible for settling payments on behalf of the Bank's customers and for settling the Bank's activities. It provides backing for the Bank's customers and divisions in the case of a state of emergency, and it participates in various interbank committees.​

I​n Israel, participants in the financial system are identified using an identification code that is unique for each participant (formerly known as a "bank code"). The identification code allows payment service providers to operate in the payment systems, and serves as part of their customers' account identification details for the purpose of making payments. As part of the process of opening the payment systems to nonbank participants, the Bank of Israel has decided that an identification code will be assigned to all bank and nonbank payment service providers who meet the necessary conditions so that all payment service providers will be identified in a uniform manner.

The Payment Systems Oversight Unit in conjunction with the Banking and Financial Services Unit are responsible for assigning identification codes.

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One of the Bank of Israel's activities as a banker for the Government and other customers of the Bank is to perform risk management to address various operational and business risks. In recent years, there has been a trend of increased controls and regulations in the global financial system, which is reflected in more cases of inquiries and payment stoppages in global banking operations. Therefore, in order to ensure business continuity for the Bank's customers, the Banking and Financial Services Unit is required to implement a risk-based approach.