The Banking Supervision Department is expanding supervision of current account fees

The Banking Supervision Department is publishing a draft Supervision of Basic Current Account Fees Order for public comments for the public good and with the aim of freezing the existing price level.  The services for which supervision will be expanded are: “Teller-executed transaction”, “Customer-executed transaction”, “Expanded track” and “Expanded-plus track”.

 

Supervisor of Banks Yair Avidan said: “The Banking Supervision Department is working in a variety of ways to enable the public to consume essential and basic banking services, both at the bank branches and through the various digital channels, at a fair price.  In order to ensure this, we have decided to bring additional current account services under supervision.  The extension of supervision is intended to enable customers to easily make use of their money, at a fair and predetermined price, should they choose one of the supervised tracks.”

 

The basic current account services included in the “Teller-executed transaction” and “Customer-executed transaction” services and in the various tracks (“Basic track”, “Expanded track” and “Expanded-plus track”) are common, basic, and essential services for the banking system’s customers.  These services can be obtained in most cases only at the banking corporation where the customer’s account is managed, and without these services, the customer will have difficulty managing his account and properly conducting financial transactions.

 

Currently, only “Basic track” services are under price supervision.  This track provides a basic package of services for a reduced price of NIS 10.  The Bank of Israel intends to bring additional banking services under supervision, with the aim of freezing the existing price levels and ensuring that the prices of such banking services are not raised without the Banking Supervision Department’s approval.  A banking corporation wishing to raise the price of these services relative to the existing prices on the date the Order is issued, will be required to submit a detailed request to the Supervisor of Banks and to obtain his approval.

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