It also needs to be recognized that such policies are likely to be hindered by a harsh tax treatment, which should be gradually removed. In periods of market tension, the intensity of supervision cannot be relaxed until the economic recovery produces its effects on banks’ accounts.
Karnit Flug: The conduct of economic policy, and the various functions filled by the Bank of Israel and the government in conducting the policy Remarks by Dr Karnit Flug, Governor of the Bank of Israel, at the press conference marking the publication of the Bank of Israel’s 2015 Annual Report, Tel Aviv, 3 April 2016.