When a megamerger is announced it is not uncommon to read in the press how small banks in the affected markets are looking to take advantage of the business opportunities created thereby. Research seems to support their optimism. Lastly, while the overall number of banking organizations has fallen since 1980, this does not mean that new, or de novo, entry has not occurred.
I would like to relate first to the current state of Israel’s economy, in which the banking system plays an important role, both as an active, influential participant and as an entity affected by economic developments. I will then address the challenges facing the new Supervisor of Banks and Israel’s banking system.