"Households hold approximately NIS 930 billion in bank deposits"

Following the Finance Committee discussion held last Monday with the Governor of the Bank of Israel, Prof. Amir Yaron on the subject of the cost of living, this morning (Wednesday) the proposal for the Banking Law (Customer Service) (amendment – interest on deposit funds) of MK Yanon Azoulai and of Yo R. Finance Committee, MK Moshe Gafni.

In the explanatory notes to the bill it is written: "The purpose of the bill is to ensure that the increase in the Bank of Israel’s interest rate will also be reflected in the increase in the interest that the banks pay on the public’s deposits or, alternatively, will not be fully translated into interest on the loans to the public."

It is also written that "For that matter, households hold approximately NIS 930 billion in bank deposits. Raising the interest rate on deposits at the same rate as the interest rate on the loans granted by banks to households would have increased household income from deposits by approximately NIS 4.7 billion."

Governor of the Bank of Israel - Amir Yaron
Governor of the Bank of Israel, Amir Yaron. archives. Photo: Knesset spokeswoman, Dani Shem Tov

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