The Bank of Israel today published the main points of its work plan and the budget for its administrative activity for 2022.The Bank of Israel’s Supervisory Council[1] discussed the Bank's annual work plan, approved the Bank's annual budget for administrative activity, and submitted the budget to the Knesset Finance Committee, as required by the Bank of Israel Law, 5770–2010.


The Bank’s work plan and budget for 2022 incorporate significant measures to support the economy due to the COVID-19 crisis, alongside measures to advance the Bank’s strategic targets for the coming years, in accordance with developments, changes, and risks in the global economy and the Israeli economy. The work plan includes widespread activity in many areas in accordance with the Bank’s statutory functions.

Highlights of the Bank of Israelwork plan for 2022​ ​

The following are the targets set by the Bank’s management for the Bank’s work in the coming years:


  • Adapting monetary policy to the changing environment;
  • Strengthening the financial system and the Israeli economy’s resilience to crises;
  • Consistently advancing research on the Israeli and global economies;
  • Broadening the abilities to collect and extract economic data and research, and making it accessible to researchers and decision makers;
  • Promoting financial infrastructures and digital means of payment in Israel’s economy;
  • Encouraging competition and innovation in the financial system;
  • Protecting customers’ rights, improving their negotiating position, and reducing information gaps;
  • Making financial services more accessible to all citizens (financial inclusion);
  • Tightening the Bank of Israel’s connection with the public, in line with the various target population groups;
  • Enhancing the professional dialogue with regulators in Israel, the Knesset, and government ministries;
  • Enhancing collaboration with international institutions and with central banks;
  • Managing the country’s foreign exchange reserves;
  • Implementing the Citizens of Israel Fund Law, 5774–2014;
  • Aligning the Bank with the changing environment.


The Bank’s budget

The Bank of Israel's budget relates to the Bank’s administrative activities necessary for performing its functions and achieving its targets.


In accordance with the Bank of Israel Law, the Bank of Israel's budget is divided into several areas of activity: 1) Management and Central Services (the expenditure budgets of the entities that deal with the management of the Bank and with the provision of services and support); 2) Performance of the Bank’s functions (the expenditure budgets of the core departments); 3) Pensions; 4) Investments; 5) Income; 6) Reserve; 7) Currency issue; 8) Managing the assets of the Citizens of Israel Fund for natural gas profits, and 9) the Credit Data System.


The Bank of Israel’s overall budget for 2022 totals NIS 1,077 million. The budget is 8.1 percent higher than in 2021, primarily due to an increase in the issuance of currency and the Bank’s investments this year.


The following are the main changes in the Bank of Israel’s budget for 2022:


Currency issue: The budget for the “Currency issue” activity area will be NIS 81 million, an increase of 119 percent relative to 2021. This increase is due to the continuing increase in cash circulation during the COVID-19 crisis (a cumulative increase of more than 30 percent during 2020–21) and the need for a sufficient inventory relative to the demand for cash. This budget is influenced by the demand for cash, existing stocks, and issuance costs, and is therefore not fixed over the years but changes each year.


Investments: The budget for the “Investments” activity area will be NIS 46 million, an increase of 22 percent compared with 2021. The increase was mainly in view of the initiation of new projects to upgrade computer and infrastructure systems and advanced financial systems. This trend changed following a reduction in the investments budget in 2021 due to the banks policy of focusing on measures to deal with the COVID-19 crisis. The Bank is expected to transition to renewed growth and is acting to lead the economy in the area of banking and adapting to the digital era, as well as improving the accessibility of information for the public.


Credit Data System: The budget in the “Credit Data System” activity area includes the budget for a range of activities required by the Credit Data Law, 5776–2016. The budget in this area will be NIS 89 million, an increase of 9 percent compared with 2021. This increase is due to the arrangement of methods and organs for on-going supervision, control, and management of the credit data sharing system, and from continued investment in developing the system.


Budget for future years: The budget for permitted commitments for coming years is NIS 398 million, of which 39 percent is designated for future commitments in respect of the operation of the Credit Data System, and 27 percent is designated for the issuance of currency.


The administrative activities budget does not include income and expenses stemming from the implementation of monetary tools, the provision of credit to banking corporations and to other financial institutions, activities related to managing liquidity in the economy, investment of the foreign exchange reserves, etc. Such income and expenses are reflected in the Bank of Israel's financial statements and in the Investment of the Foreign Exchange Reserves report of the Bank.



Table 1: The Bank of Israel’s Budget for 2022

(financial data in NIS thousand)



2021 budget


Permitted commitments for coming years

Personnel ceiling

Bank of Israel

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= = = = =


= = = = =


= = = = =


= = = = =

Management and Central Services





Performance of Bank’s functions

























Currency issue





Operation of the Citizens of Israel Fund for natural gas profits





Credit data system





[1] Under the Bank of Israel Law, 5770–2010, the Supervisory Council is the body charged with supervising the administrative activity of the Bank of Israel. The Supervisory Council consists mostly of members from among the public.