The first is the Dodd-Frank Act’s creation of the FSOC and the power it was given to designate individual nonbank firms as systemically important and thus subject to prudential regulation by the Federal Reserve. The FSOC has designated four nonbank firms as systemically important. 8 The FSOC is also a useful venue for regulators to collaborate on identifying emerging threats.
The current situation suffers from the following distortions: •  Local-currency deposits are tax exempt; foreign-currency deposits in Israel are taxed. •  Savings schemes are exempt; tradable government and private indexed bonds are taxed. •  Unindexed government bonds are tax free, while similar private bonds are taxed. The tax, where applicable, is 35 percent, and in some cases higher.