Supervisor of Banks David Zaken has notified Governor of the Bank of Israel Karnit Flug of his wish to leave his post at the end of June, after four and a half years. Flug will shortly announce the setting up of a search committee to find the next supervisor.
Zaken started at the Bank of Israel 25 years ago, and has been in his present position since January 1, 2011. Zaken headed the inter-ministerial committee on boosting competition in the banking system. He was a member of the Financial Stability Board Regional Consultative Group for Europe, and served on several inter-ministerial committees, among them the committee on concentration in the economy and the committee on corporate debt settlements.
Zaken continued his predecessor Rony Hizkiyahu's policy of placing restrictions on home mortgages. Nevertheless, the amount of mortgages awarded continued to rise, in line with the rise in home prices, but the mix of mortgages has changed, and the Bank of Israel claims that the risk in the mortgage market has fallen.
The Bank of Israel said in a statement, "Zaken's period in office was characterized by improvement in the financial strength and stability of the banking system, at the same time as fairness and competition in the system's activity vis-a-vis the public was promoted. Under his direction, the Banking Supervision Department adopted the Basel 3 rules for strengthening the banks' capital cushion and liquidity and to reduce their leverage, as well as implementing international banking standards for risk management. In addition, steps were taken to reduce concentration in the banks' credit portfolio, and to reduce risks associated with mortgages, both to borrowers and to the banks. Zaken promoted the treatment of cyber risks by the Banking Supervision Departments and strengthened cooperation between all the national agencies dealing with this issue."
Zaken himself said, "At the beginning of my term, I set goals for the Banking Supervision Department in the areas of stability and bank-customer relations. At the end of a full term, which was extended in order to further progress and complete tasks, I am proud of the way we have achieved the goals, and am about to end a long period in banking supervision with a sense of satisfaction. I have much work ahead of me, and it is too early to say concluding words and thanks."
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015