Annual Report of the Activities of the Clearing House Committee, 2013

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Bank of Israel - General

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The payment and settlement systems in Israel have been changed considerably in recent years, including major changes in the activity of the Banks’ Clearing House—the Paper-based (Checks) Clearing House and the interbank Automated Clearing House (known by its Hebrew acronym Masav). The main changes include: settlement processes were brought in line with the Zahav (RTGS–Real Time Gross Settlement) system environment, the Paper-based Clearing House system operated by the Bank of Israel has been replaced, changes have been made in the settlement sessions and the manner in which they are managed, manual settlement has been reduced considerably, and changes have been made in the settlement processes at Masav.

 A number of important issues feature on the agenda of the Banks’ Clearing House Committee at the beginning of 2014. These include advancement of the Check Truncation Law, which regulates the move from the physical settlement of checks to electronic settlement and the issue of check destruction; implementation of the planned reform in the issue and settlement of corporate securities, including computerization of the process; issues that arose at the Joint Committee headed by the Director General of the Prime Minister’s Office, which is acting to reduce the amount of unreported economic activity—the shadow economy—in Israel’s economy by curtailing the use of paper-based means of payment (funds and negotiable checks) and by increasing the use of advanced electronic means of payment; revision of the Banks’ Clearing House rules, including the inclusion of a diamond denominated accounts agreement for the purpose of regulating the work processes between the branches of the banks providing interbank settlement services in accounts that are designated for diamond transactions; and the processing of other issues, insomuch as they arise, in connection with the increased oversight of the Automated Clearing House and Automatic Banking Services (known by its Hebrew acronym of Shva), bodies that were declared as designated payment systems in July 2013.

In the past, we have succeeded in implementing extensive and significant changes. By virtue of the efforts and willingness of all settlement members to be at the forefront of the technology in the field, and by virtue of the cooperation between the members of the Banks’ Clearing House Committee, I believe that this year as well we will succeed in coping with the challenges facing us.
With thanks and regards,
Ronit Chitayate