Bank of Israel

   The question of creating a central bank was discussed in the early days of Israel's statehood, but the matter was temporarily shelved due to the more immediate challenge of fighting for Israel's survival in its War of Independence (1948—49). The immediate focus was on the matter of issuing a currency for the new state. This was addressed in the Bank Notes Ordinance, 5708-1948, which came into effect on 17 August 1948. The ordinance defined the authority to issue banknotes in a charter between the provisional Council of State and the Anglo-Palestine Bank (a private corporation founded by the Zionist Movement in 1903 and later known as Bank Leumi Le-Israel B.M.). The other functions normally associated with a central bank, such as regulating and directing monetary policy and banking supervision, were temporarily housed with Israel's Ministry of Finance.
   The Bank of Israel Law, 5714-1954 was adopted by the Knesset on 24 August 1954 and took effect on 1 December 1954. On that same day, the Bank of Israel was officially established. The functions of the Bank of Israel were defined in section 3 of the law as follows: "to administer, regulate and direct the currency system, and to regulate and direct the credit and banking system in Israel, in accordance with the economic policy of the government and the provisions of the Law, with a view to promoting by monetary measures (1) the stabilization of the value of the currency in Israel and outside Israel; (2) a high level of production, employment, national income and capital investments in Israel." Under the provisions of the Bank of Israel Law and subsequent implementing legislation, the Bank of Israel has a range of responsibilities. These include regulating and directing monetary policy, offering economic advice to the government, managing Israel's foreign exchange reserve, supervising banking, promoting financial stability, and issuing currency. The Bank of Israel operates independently of the government.
   The governor of the bank is appointed by Israel's president on the recommendation of the government. The first governor of the Bank of Israel was David Horowitz, who served from 1954 to 1971. Other governors of the Bank of Israel have included Moshe Sandbar (1971-76), Arnon Gafny (1976-81), Moshe Mandelbaum (1982-86), Michael Bruno (1986-91), Ya'akov Frenkel (1991-2000), and David Klein (2000-2005). Since 2005, the governor of the Bank of Israel has been Stanley Fischer.

Historical Dictionary of Israel. .

Look at other dictionaries:

  • Bank of Israel — Infobox Central bank bank name in local = בנק ישראל (Hebrew) image 1 = Bank of Israel logo.png image title 1 = Bank of Israel logo image width 1 = 213 image 2 = image title 2 = headquarters = Jerusalem, Israel president = Stanley Fischer leader… …   Wikipedia

  • David Klein (governor of the Bank of Israel) — David Klein ( he. דוד קליין; born 1935) served as the governor of the Bank of Israel from 2000 2005.Klein received his higher education at the Hebrew University of Jerusalem, obtaining a BA in 1959 in general history and economics. In 1971 he… …   Wikipedia

  • First International Bank of Israel — The First International Bank of Israel (FIBI) is an Israeli bank founded in 1972 through the merger of several smaller banks. It is the fifth largest bank in Israel. Its commercial base consists primarily of large corporate clients as well as… …   Wikipedia

  • Union Bank of Israel — The Union Bank of Israel, Ltd., more widely known by its Hebrew name, Bank Igud, pronounced Eegude , (בנק אגוד) is the sixth largest Israeli bank with thirty branches spread around the country. The bank complies with the ramifications of loans… …   Wikipedia

  • Governor of the Bank of Israel — director of the Bank of Israel …   English contemporary dictionary

  • First International Bank of Israel — Israeli bank …   English contemporary dictionary

  • Bank Mizrahi-Tfahot — Type Public (TASE: MZTF) Industry Banking Founded 1923 (as Bank Mizrahi) Founder(s) …   Wikipedia

  • Bank Otsar Ha-Hayal — Bank Otsar HaHayal (Hebrew: בנק אוצר החייל‎) is an Israeli bank. The name literally means Bank of the Soldier Treasury . Otsar HaHayal was founded in 1946 in the British Mandate of Palestine as a means for Jewish war veterans to store their… …   Wikipedia

  • Israel Discount Bank — Ltd. ( he. בנק דיסקונט לישראל בע מ), (TASE|DSCT) I.D.B., is one of Israel s three largest banks, with 260 branches, and assets of 171 billion NIS (US$38 billion). The Eretz Yisrael Discount Bank was founded on April 5, 1935 by Leon Recanati, a… …   Wikipedia

  • Bank Leumi — Rechtsform Aktiengesellschaft Gründung 27. Februar 1902 Sitz …   Deutsch Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.