Daily Management Review

Investors Granted Permission By Israeli Regulator To Launch A New Digital Bank


Investors Granted Permission By Israeli Regulator To Launch A New Digital Bank
An entrepreneurial group was granted a conditional license and control permit by Israel's banking regulator on Sunday to launch a new online bank, the country's second in three years and the second to enter the highly consolidated banking market.
The new institution known as Esh Bank Israel has passed inspection, according to the Bank of Israel's banking supervision division.
According to the statement, the approvals will enable the founders to proceed and finish the technical, operational, and regulatory preparations necessary for the start of the bank's operations.
These include hiring a management team and bank staff as well as concluding the phases of new technology development and testing.
The central bank estimated that it will take about a year and a half to open the bank.
"We have a long way to go," said Shmuel Hauser, the chairman of Esh, adding the bank would offer attractive interest rates and banking services without commissions.
One Zero Digital Bank became the first new Israeli bank in 43 years in January of last year after receiving the final regulatory approval for a full banking license.
The two largest banks in Israel control more than half of the sector's assets, and the country's banking system is highly concentrated and dominated by a small number of institutions.
"We see great importance in the entry of banks and additional new players into the banking system in Israel, so that they contribute to increasing competition and innovation in the financial system," said Bank of Israel Governor Amir Yaron.