As banks report record profits, the Israeli Competition Authority has asked banks to provide details on the interest rates paid on deposit accounts.
After the Bank of Israel reiterated last week that it is not satisfied at the interest rates paid on deposit accounts, the Israel Competition Authority has now also entered the picture. The Authority, headed by Adv. Michal Cohen, has demanded in recent days that the banks provide details about rises in the interest rates paid on deposit accounts, after the Bank of Israel hiked the rate last week by 0.25% to 4.75% - the tenth rise in just over a year. This is after data has revealed that banks have been hiking the interest rates on loans by more than on deposit accounts.
This comes after the banks reported record profits in 2022 because of the rise in interest income, and even higher profits in the first quarter of 2023, compared with the first quarter of 2022.
Moreover, a report recently published by the Supervisor of Banks found that Israelis hold NIS 500 million in bank accounts that earn no interest whatsoever and that the banks are not doing enough to encourage customers to transfer these funds into interest bearing accounts.
Published by Globes, Israel business news - en.globes.co.il - on May 28, 2023.
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Michal Cohen credit: Cadya Levy