To view this message as a word file, click here.
establishment of another new bank in Israel, following the Banking Supervision Department’s completion of its review of the initiative to establish a bank to be named “Revolut Israel Bank Ltd. (in formation)”.
Bank of Israel Governor Professor Amir Yaron and Supervisor of Banks Mr. Daniel Hahiashvili informed the controlling shareholder of the Revolut Group, Mr. Nikolay Storonsky, that the review process for granting a license to establish a new bank in Israel has been completed. At the conclusion of the process, and following consultation with the Licensing Committee[1], the Governor today delivered to the controlling shareholder’s representatives a conditional license to establish the bank, as well as a permit to control it.
This is the third license granted to a new bank in Israel since December 2019, following nearly 40 years during which no new bank was established in Israel, and it reflects the Bank of Israel’s deep commitment to increasing competition in the banking industry.
The granting of the control permit and the conditional banking license will enable the Revolut Group to continue and complete the preparations required for the activation of the bank’s license, including in the areas of regulation, technology, and operations. The Banking Supervision Department will continue to accompany the bank’s establishment process and supervise its implementation as part of the completion of the milestones required to activate the conditional license and remove its restrictions, insofar as these are fulfilled.
Bank of Israel Governor Professor Amir Yaron said: “At the end of 2022, I went to meet Revolut’s leadership in London, when it was still a relatively small company, with the aim of persuading them to enter the Israeli banking market. The completion today of the review process for granting a banking license marks the closing of a circle. Over the years, I have repeatedly stated that the most effective way to increase competition is by bringing additional participants into the industry, and during these years we have worked to remove entry barriers and create the conditions necessary for new participants to enter the banking system. The granting of a conditional license to Revolut, together with other participants already in the process, reflects the success of these steps.
“Revolut is an international financial group serving many customers around the world, and it has now chosen to establish a bank in Israel. This is the first step on the path toward establishing the new bank, and together with the support of the Bank of Israel, they will work to complete the process. Revolut’s investment is a vote of confidence in Israel’s economy, in the banking system, and in its supervision. I wish Revolut great success in establishing the new bank.”
Supervisor of Banks Daniel Hahiashvili said: “In recent years, the Banking Supervision Department at the Bank of Israel has led a series of measures to increase competition in the banking system. As part of the graduated licensing framework, the Department promoted regulation tailored to small and new banks, with the aim of enabling new participants to enter the banking system and broadening competition within it—a vision that is once again being realized with the granting of a banking license to Revolut.
“Revolut is a global, profitable, and growing financial group, with broad experience and geographic reach, providing its customers with a range of financial services, including payments, foreign exchange, credit, and deposits. I see Revolut’s entry into the Israeli banking market as having the potential to expand competition and increase the range of financial services and products offered to households and businesses in Israel. The Banking Supervision Department will continue to oversee the bank’s establishment process until the conditional license becomes operational and the restrictions are lifted, and will continue to accompany other entities interested in establishing a bank.”
Dr. Shmuel (Muli) Ben-Zvi, Chairman of Revolut Israel Bank Ltd. (in formation), said: “We thank the Bank of Israel for its professional and substantive guidance, which has brought us to this important milestone. As we enter the local market, we are drawing on Revolut’s international experience, innovation, and proven capabilities, while adapting them to the Israeli market in order to create a meaningful and attractive value proposition for customers in Israel.”
Uri Natan, CEO of Revolut Israel Bank Ltd. (in formation), said: “Israel is a global center of innovation and technology, with a sophisticated public possessing advanced digital literacy and expecting financial services of the highest standard. Our goal is to create real competition in the Israeli banking market through a world-class digital financial services environment, and we look forward to bringing this offering to the Israeli public.”
[1] A committee composed of public representatives that advises the Governor of the Bank of Israel and the Supervisor of Banks on banking licensing matters.