Supervision of the banking system

The banking system plays a central role in every modern economy. The public entrusts banks with the majority of its financial savings, and these funds are used by banks, among other purposes, to provide the credit required by businesses and households. The essential functions performed by the banking system, together with the recognition that a failure of this system would severely impair the functioning of the economy, necessitate effective banking supervision. As provided in Section 4(7) of the Law, the Bank of Israel is responsible for “supervising and regulating the banking system in accordance with its powers under the banking laws and under any other law”.

Vision of the Banking Supervision Department

“Promoting the public interest by safeguarding the stability and fairness of the banking system through professional, advanced, and transparent supervision.”