The Semiannual Report to the Economic Affairs Committee on Prices of Common Banking Services for Households—2017


 Report on Prices of Common Banking Services in Hebrew


The Supervisor of Banks at the Bank of Israel, Dr. Hedva Ber, submitted the Semiannual Report on Prices of Common Banking Services for Households to the Knesset’s Economic Affairs Committee. The report is based on banks’ and credit card companies’ reports of actual income from fees charged during the full year of 2017.

 

Main points of the report:

  •        The average monthly cost for managing a current account and maintaining a credit card for an individual customer account, in the full year of 2017, was approximately NIS 24.6, a slight decline of approximately 1 percent compared with NIS 24.8 in the year of 2016.
  •        During the past seven years (2011–2017) there was a decline of approximately 16 percent in the average total monthly cost for a household and private banking account. This cost is made up of the cost of a current account, which declined by about 35 percent, and the cost of credit cards, which increased by about 27 percent, an increase that derives mainly from the trend of growth in the number of cards held by customers in a single account.
  •        In 2017, several guidelines went into effect, resulting in an additional reduction in fees in respect of banking services. Within this framework, beginning from November 1, 2017, the fees for all services provided by direct channels were reduced vis-à-vis the fees charged for teller-executed transactions. The Banking Supervision Department’s goal with this requirement is to ensure that banking corporations’ savings from increased efficiency are rolled over to consumers[1] and to encourage the public to switch to using advanced digital tools.

 

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[1] Press release dated November 1, 2017.

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