At its weekly session today, the government approved the new composition of Bank of Israel’s advisory commission and advisory council. It is about a year since the previous council ended its term of office. The government decision was in conformance with the request of Prime Minister Benjamin Netanyahu and Minister of Finance Meir Sheetrit.
The Ben-Dror commission, headed by retired judge Ben-Dror, which approves senior civil service appointments, approved the new composition. The list of candidates did not include the Minister of Health’s daughter, Esti Matza-Rom, CPA, who was included in the original list of candidates. Matza-Rom holds a number of degrees in economics, accountancy and business administration. She is in charge of the nostro investments of the Migdal insurance company.
Under the current Bank of Israel law, Governor of the Bank of Israel Prof. Yaakov Frenkel is obliged to consult with the advisory commission and council, but need not act in accordance with their recommendations. The ten advisory commission members are chosen out of the extended plenary advisory council.
Bank of Israel officials commented today that the appointment of the advisory council and commission would enable various erstwhile activities to be resumed. It also noted that Governor of the Bank of Israel
Yaakov Frenkel had approached the government and the Minister of Finance a year ago, asking them to appoint the commission and the council as soon as possible. The two bodies have limited capability to affect the Bank of Israel’s interest rate policy, or other matters. They do not have the means to enforce their recommendations on the Governor of the Bank of Israel.
Published by Israel's Business Arena April 25, 1999