The Supervisor of Banks: "Customers should be given a simple tool to compare products"
Following the mortgage reform that came into effect, Yair Avidan issued a letter to the heads of the banking systems: "The changes in interest rates and inflation have raised the importance of increasing the understanding of customers"
Bini Ashkenazi
07/09/2022
Wednesday, 07 September 2022, 10:05
Share on Facebook
Share on WhatsApp
Share on Twitter
Share by email
Share in general
Comments
Comments
The Supervisor of Banks Yair Avidan (Photo: Reuven Castro)
The Supervisor of Banks Yair Avidan issued a letter today (Wednesday) to the CEOs of banking corporations and credit card companies on the subject of "consumer fairness in a changing financial environment".
"In recent months there have been changes in the interest rate and inflation environment, this after years of relative stability," the supervisor wrote in the letter, " These changes raised the importance of increasing the customers' ability to understand the consequences of the changes and increasing their ability to compare the conditions offered to them by different banks in the variety of banking products, both on the credit side and on the deposit side.
Against this background, in recent months I have had conversations with senior executives of the banking system in which I emphasized my expectation to look after the customers' affairs in view of the aforementioned changes, including adapting the products and services to the customers' needs, managing communication and contact with the customers, supporting the customers in realizing the benefits of the products and services provided and making sure that the interests of the customers are met in the center
"Continuing to the various reforms led by the Bank of Israel in the recent period with the aim of increasing transparency and strengthening the power of the customer, I would like to point out that the supervision of banks intends to publish the interest rates, both those actually paid by each of the banking corporations for shekel deposits, and those actually charged for granting credit , this is to give customers a simple tool that will help them easily compare the conditions offered by the various banking corporations and choose the product that suits them.
With regard to investment products, such as deposits - in recent years, due to the zero interest rate environment, products
The bank deposits were not a significant investment alternative for the customers and as a result their activity in this market decreased and significant balances remained in the current accounts and as a rule they do not bear interest. In view of the changes in the interest rate environment and inflation as mentioned above, the supervision of the banks expects the banking corporations to draw the attention of the customers to the banking investment products , which they make available in order to deposit their money and invite customers to examine whether they are suitable for their needs. In this context, customers interested in banking products must be given a complete picture of the terms, including the terms of the break, as required by
the banking rules."
With reference to credit, the inspector noted the reform to increase transparency and competition in the mortgage market, which came into effect on August 31, and which improves the ability of customers to understand and compare: "Besides
This, and within the framework of the expectation to conduct themselves in a responsible, proper and fair manner towards their customers as part of their activities, the banking corporations are required to pay attention to improving the customers' ability to understand and compare also in relation to other banking products."
Of money
our money
Tags
the supervisor of banks
