This will instill high standards into Israel’s banking system that are on a par with the most advanced in the world. The second external goal for the Bank of Israel and the new Supervisor of Banks is strengthening competition in the banking system, particularly retail banking.
Making the banking system more competitive is one of the major objectives of the Bank of Israel, and, I would assume, of every government in Israel. The Bachar Committee dealt with the issue of competition in the areas of credit and the capital market, and there is a need to increase competition in banking services provided to households and small businesses.