"Globes" has learned that some of the major banks are ceasing to honor checks drawn against United Mizrahi Bank, due to the prolongation of the strike there.
Bank Hapoalim and Discount Bank instructed their branches not to honor United Mizrahi checks, since they cannot be cleared, making it impossible to know whether they are covered. It was learned however that these banks are continuing to honor checks of large business customers.
In response, Bank Hapoalim's spokesperson said, "Due to the prolongation of the strike, and the inability to ascertain whether the checks are covered, it was decided to stop accepting checks for withdrawals against the United Mizrahi Bank."
Discount Bank said that bank customers can deposit United Mizrahi Bank checks "conditionally", meaning that the money involved cannot be utilized.
In response, the Supervisor of Banks said that the banks have the right to decide not to honor checks for business reasons.
The First International Bank allows customers to deposit United Mizrahi Bank checks in a "temporary transfer" account. "We allow most customers to function taking into account the amount deposited," the bank's spokesperson said, "unless the customer is problematic".
Bank Leumi said, "In principle, we accept all the checks and credit customers for the amount stated". In contrast, Union Bank said that each incidence is examined individually.
It should be noted that according to an agreement reached between United Mizrahi Bank and the major banks, every Mizrahi bank customer can enter another bank and withdraw up to NIS 500 a day in a cash check for the strike's duration.
The Mizrahi bank said that business customers encountering problems with depositing the bank's checks can ask their branches to apply to the emergency center the bank set up to receive approval for depositing the money.
The Mizrahi bank strike entered its tenth day today. There were no contacts whatsoever between management and employees. At the Discount bank, management decided to keep the ten branches closed yesterday by the workers committee closed today as well. "The branches will be re-opened only after we receive unequivocal commitment not to infringe on the smooth running of the bank any further," the bank stated.
Published by Israel's Business Arena on 29 May, 2000