The banks will be required to publish the interest on the minus and on the deposits
The supervision of banks at the Bank of Israel announced today that from the beginning of 2023 banks will be required to publish both the interest rate they charge on the minus and the interest rate they grant on deposits.
Will this step deepen the competition between the banks?
Sunday, October 02, 2022, 13:57 Updated: 14:11
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How much does the bank charge us for the minus, how much does it give us for the deposit.
The information that should increase the competition (Photo: ShutterStock)
Will this be the step that will increase the competition between the banks for our pockets, the customers?
In a letter sent to banks in Israel a few weeks ago, the Supervisor of Banks, Yair Avidan, announced that the Supervisor of Banks intends to act to publish the interest rates of households that are actually paid by each of the banking corporations for NIS deposits, and that are actually collected for granting credit.
Avidan also reiterated this commitment in an interview Liat Ron conducted with him at the end of last week.
Today, the Banking Supervision Department announced that the important data will be published on a monthly page that the banks are responsible for presenting to the public: "We are happy to announce that the first stage of the process has been completed and now the data on the average interest rate of each of the banks that were actually given for deposits (with fixed and variable interest rates) and credit (with variable interest rates) in currency An Israeli who is not linked to the index, through a dedicated page on the bank's website, on a monthly basis, and will be updated to the last month that ended at the end of the data compilation."
This was stated in the notification of the supervision of the banks.
Already during the first quarter of 2023, further expansion of the information presented on the website is expected and data will be added to expand the comparison.
The Supervisor of Banks, Yair Avidan (Photo: Reuven Castro)
The Supervisor of Banks, Yair Avidan
: "As part of the many consumer reforms promoted by the bank in recent years, today we are publishing information about the interest rates of the deposit and credit products for households, broken down by the various banks. I believe that this step will help strengthen the power of the customer and give them the ability to make an informed decision , after examining the set of data in a simple, accessible and convenient manner".
It should be noted that in Israel the competition between the banks is low, but it seems that recently a change is taking place nevertheless, both among the consumers - the bank customers, and with the regulator, the supervision of the banks at the Bank of Israel which pushes for more open and open banking.
Will the obligation to publish interest rates be another step on the way to a competitive financial services market?
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