A Bank of Israel report belies the public's feeling that bank fees rose as a result of the reform and the Bank Fees Supervision Law that came into effect in July. A survey by the Supervisor of Banks Rony Hizkiyahu is based on household bank fees data from the five large banks for the third quarter of 2008, the first quarter since the reform was instituted.
The Bank of Israel reports that the average fee for the basket of common checking account fees, including credit frameworks, fell to NIS 16.20 per month as a result of the reform, 9% less than before the law. The savings amount to NIS 1.60 per checking account per month, amounting to NIS 19 per year.
The Bank of Israel adds that Bank Hapoalim (TASE: POLI; LSE:80OA) and Bank Leumi (TASE: LUMI) have the lowest household checking account fees, and that First International Bank of Israel (TASE: FTIN1;FTIN5) has the highest. Bank Hapoalim reduced the price of its fees basket by 29%, from an average of NIS 19.90 per month to NIS 14.10. Bank Leumi reduced its fees by 10% from an average of NIS 17.70 per month to NIS 16.
Fees paid by customers at Israel Discount Bank (TASE: DSCT) and Mizrahi Tefahot Bank (TASE:MZTF) rose by 8% and 14%, respectively. Customers of First International Bank's saw their fees jump 48%.
The Bank of Israel said that bank fees reform lowered the prices of banking services provided by tellers to the poor and disabled, giving them more access to banking services. As a result of the reform, over 80% of poor and disabled households pay NIS 11-13 per month in bank fees, down from NIS 18-25 beforehand.
The Bank of Israel confirmed that it will allow the banks to offer customers fees package plans.
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2008
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