The Postal Bank will only be allowed to offer credit and pay interest in cooperation with other banks.
The Postal Bank is permitted to provide financial services after the Ministerial Committee on Legislation today approved an amendment to clause 11 of the Postal Authority Law. However, the Postal Bank will only be allowed the financial services offered by other banks rather than it own financial services. The initiative came from Minister of Communications Moshe Kahlon in an amendment he termed "The social bank."
The amendment thus enables the Postal Bank to offer financial services in cooperation with the country's banks and financial institutions. In collaboration with external financial bodies the Postal Bank will now be allowed to extend credit and pay interest but without taking risks and using its own deposits.
Published by Globes, Israel business news - www.globes-online.com - on November 27, 2011
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