Supervisor of Banks Yair Avidan has informed Governor of the Bank of Israel Amir Yaron that he wishes to step down in June 2023 after just three years in the post. His two immediate predecessors, Hedva Ber and David Zaken, each served for almost five years. Yaron has acceded to Avidan’s request, and formed a search committee headed by Deputy Governor Andrew Abir to find a replacement.
Avidan took up his post in May 2020, at the height of the Covid-19 pandemic. Before that he held a variety of positions, in a career spanning more than 30 years, at Bank Leumi and at Israel Discount Bank.
Avidan thanked the governor for what he described as the great privilege of heading the Banking Supervision Department in the past few years. "I shall shortly end three years of intensive work, involving many varied challenges, accompanied by real satisfaction at the scope of the work. The Banking Supervision Department has led significant change in the banking system to the benefit of bank customers and the economy, and I have no doubt that this will strengthen in the future. I took on the job of Supervisor of Banks after I had already retired, out of a sense of mission and the desire to devote a number of years to significant public and social activity. That will come to an end in a few months’ time."
Avidan was against the recent decision to split CAL Israel Credit Cards from Israel Discount Bank. People who have met with him recently say that he also expressed deep reservations about steps planned by the government, particularly about changing the status of legal advisers in government ministries to make them personal appointees of ministers rather than independent civil servants reporting to the Attorney General.
Nevertheless, sources close to Avidan stress that there is no connection between his announcement of his retirement and the current political situation in Israel, and that his motivation is the desire to devote more time to his family as a father and grandfather.
During his period as Supervisor of Banks, Avidan oversaw the founding of a new digital bank, One Zero, Israel’s first new bank in 40 years, and the granting of a license to Esh, a digital bank in the process of being set up by Palo Alto Networks founder Nir Zuk, with the aim of boosting competition in the banking system. During this period, the Bank of Israel also completed the commissioning of the system enabling customers to switch banks easily online, again in order to boost competition.
Similarly, Avidan was involved in measures to increase transparency in relation to bank interest rates to help customers shop around, and to remove barriers to the use of cloud computing systems. He also promoted the open banking reform, allowing the sharing of bank customer information with other entities, for the customer’s benefit, although this is still in its infancy in comparison with similar moves in the US and the UK.
Yaron thanked Avidan for their joint work. "Yair took up the role at the height of a very challenging period for the economy and for Israel as a whole. After a long career with many achievements in the private sector, we called him to the flag, and he came. During our period of working together, Yair led and implemented a very long series of reforms, and we have made many changes and improvements to the banking and financial system. With all my heart I wish him success in the future, and I am sure that the Banking Supervision Department, with its professional and dedicated staff, will continue to demonstrate leadership in the various important areas of banking and finance in its charge."
Published by Globes, Israel business news - en.globes.co.il - on February 8, 2023.
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