The Supervisor of Banks to step down from his position on June 30, 2015, after four and a half years in the role
The Supervisor of Banks to step down from his position on June 30, 2015, after four and a half years in the role.
The Supervisor of Banks, Mr. David Zaken, has informed the Governor of the Bank of Israel, Dr. Karnit Flug, of his intention to step down from this position at the end of the first half of the year, after four and a half years in the position. In light of that, the Governor will soon announce the formation of a search committee to recommend candidates for the next Supervisor.
David Zaken began his career at the Bank of Israel about 25 years ago, and since January 1, 2011, has served as Supervisor of Banks and member of Bank management. Zaken headed the joint Committee to Examine Increasing Competitiveness in the Banking System that was appointed by the Minister of Finance and the Governor of the Bank of Israel. Within the framework of his position, he is a member of the Financial Stability Board Regional Consultative Group for Europe and has served as a member on several interministerial committees, including the Concentration Committee and the Committee to Assess Debt Restructuring Proceedings.
Zaken’s term was characterized by the strengthening of the robustness and stability of the banking system, while advancing the fairness and competitiveness in the system’s activity toward the public. Under his management, the Banking Supervision Department adopted the Basel III provisions for strengthening capital buffers and liquidity and for reducing banks’ leverage, at the same time as implementing international banking standards in the management of risk, both financial and operational. In addition, steps were taken to reduce the concentration in the bank credit portfolio and to reduce the risks, to both borrowers and banks, inherent in mortgages. Zaken promoted the handling of cyber risks by the Banking Supervision Department and worked to strengthen the collaboration between all the national entities involved in the issue.
In terms of bank–customer relations, David Zaken worked to implement the recommendations of the Committee to Examine Increasing Competitiveness in the Banking System, including: promoting a charter for licensing credit unions; issuing directives that allow accounts to be opened via the Internet; making it easier to transfer from one bank to another; improving the disclosure to the customer via a consolidated annual report (banking ID document); reducing and simplifying the payment for banking services in a current account through a fee-track system; and cancelling and reducing various fees.
The Supervisor of Banks, David Zaken, said, “At the beginning of the term, I set out targets for the Banking Supervision Department, both in terms of stability and in terms of bank–customer relations. At the conclusion of a full term, which was even extended in order to complete and advance the goals, I am proud of the targets achieved and am set to end a long period in the Banking Supervision Department, with a feeling of satisfaction. I still have quite a bit of work ahead of me and it is too early to say parting words and thank–yous.”
Governor of the Bank of Israel Dr. Karnit Flug said, “I want to thank David Zaken for the leadership, professionalism, honesty, and dedication with which he led the Banking Supervision Department. Dudu worked with the deep understanding that he was a public servant, working only for the public good, and with that sense of mission he worked untiringly to strengthen the stability of the banking system, and at the same time, worked consistently and uncompromisingly to increase the competition and fairness of the system vis-à-vis and for the good of the public.”