Against the backdrop of Supervisor of Banks David Zaken's plans to cut fees on checking accounts, Bank Leumi (TASE: LUMI) today announced new pricing for many of its fees. The new fees will come into effect on August 1.
Bank Leumi, run by CEO Rakefet Russak-Aminoach, has announced that it will reduce fees for households and small businesses, and will raise fees for large businesses, which will partly offset the loss of revenue from the retail sector. The reductions will cost the bank an estimated NIS 20 million a year.
Bank Leumi is reducing 17 fees in the retail sector. Although some of the reductions are substantial, such as the reduction in the fee on the buying and selling of foreign securities from $25 to NIS 25, most of the fees which were reduced are on infrequently used services.
By contrast, Bank Leumi subsidiary Arab Israel Bank cut a frequently charged direct transaction fee by 15% from NIS 1.95 to NIS 1.65.
Bank Leumi is changing more than 30 fees in the business sector, raising them in most cases. For example, it is raising the fee for a transfer to an account at another bank from NIS 41 to NIS 45, and is raising the fee for renting safety deposit boxes.
Bank Leumi said that it had not updated its fees for many years, and also noted the Bank of Israel's revision of its definition of a small business from a maximum turnover of NIS 1 million to a maximum turnover of NIS 5 million. Bank Leumi said that the higher fees would only apply to businesses with a turnover of more than NIS 10 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2013
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