Commercial banks will offer benefits and lowered prices to customers to the tune of NIS three billion, following a plan by Israel's central bank, the Bank of Israel (BOI) announced Sunday.
As part of the voluntary plan, commercial banks will offer discounts and benefits to the tune of NIs 1.5 billion per year between 2025 and 2027, with each bank publishing its own set of discounts for its customers.
The BOI announced a general set of discounts that the commercial banks will provide, including offering interest rates and benefits for money sitting in checking accounts.
What are the benefits?
Benefits may also include reduced interest rates charged for over-drafted accounts, discounted fees, or significant discounts for relevant population sectors, and grace periods for loan repayment.
"The well-being of households and small businesses is always before our eyes. The key to improving customer welfare in the banking system is the removal of barriers and increasing competition," said Bank of Israel Governor, Professor Amir Yaron.
"In light of the high profitability of the banking system in recent years and the challenging impacts of the Israel-Hamas War on households and small and micro businesses, the Bank of Israel has developed a framework for financial relief that will provide an immediate response to the public," he added.
Supervisor of Banks Daniel Hahiashvili also commented, saying that "in the framework, we emphasized that most of the financial relief in the various packages will be provided directly to clients, without the need to submit a request, while allowing the bank the business discretion to act in accordance with its business focus and client mix."