The Bank of Israel has announced today that Supervisor of Banks David Zaken fined Bank Hapoalim (TASE: POLI) for charging customers who closed their accounts fees that exceeded set amounts. Zaken has also fined Israel Discount Bank (TASE: DSCT) for holding a larger percentage of control over a non-financial corporation than is legal.
In accordance with paragraph 11a in the Banking Law, Zaken fined Bank Hapoalim NIS 600,000 for charging fees that were not in accordance with the bank's full price list.
The financial sanction was set after the Supervisor of Banks' audit findings found that customers who closed accounts were being charged amounts exceeding the bank's full price list. The bank has located the accounts that were charged such fees over the past seven years, and is now trying to locate the account owners who need to be reimbursed. The bank needs to repay NIS 5 million. In addition, the bank has taken steps to prevent the recurrence of the mistakes.
Zaken also fined Israel Discount Bank NIS 112,950 in December 2011 for holding 25% of a non-financial corporation, which is above the legal level of 20%, according to paragraph 11 in the Banking Law.
Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2012
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