The Bank of Israel today published a report on the bank fees reform as of the end of September 2009. The central bank says that since the reform was launched, households' average monthly spending on checking account services has plummeted.
The average monthly expenditure on the basket of common checking account services (including credit frameworks) and consumer loans fell 21% from NIS 22.90 before the reform to NIS 18.10 in the third quarter. The average monthly expenditure on the basket of common checking account services (including credit frameworks) at the five big banks fell 10% to NIS 15.90 from NIS 17.80.
The average monthly expenditure on the basket of common checking account services (including credit frameworks) was NIS 14.70 at the two big banks (Bank Hapoalim (TASE: POLI) and Bank Leumi (TASE: LUMI)), which serve nearly 70% of households, down from NIS 18.80 before the reform.
The average monthly expenditure on fees by Isracard Ltd. credit card holders, 42% of all Israeli credit card holders, was NIS 4.40 in the third quarter. The average monthly expenditure on fees by Leumi Card Ltd. credit card holders, 27% of all Israeli credit card holders, was NIS 9 in the third quarter. The average monthly expenditure on fees by Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa) credit card holders, 31% of all Israeli credit card holders, was NIS 10.70 in the third quarter. The average monthly expenditure on fees by credit card holders has fallen since the reform came into effect, including a 7% drop in January-September.
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2009
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