Flug Set to Extend Bank Supervisor's Term Beyond Year-end

David Zaken, 48, has received praise for the actions he’s taken in the banking sector since assuming his position in 2011.

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Banks Supervisor David Zaken.
Banks Supervisor David Zaken.Credit: Tomer Appelbaum

Bank of Israel Governor Karnit Flug is extending the term of David Zaken, the supervisor of banks at the Israeli central bank, beyond his current four-year term that ends at the end of December.

The two have not finalized how much longer Zaken will stay on beyond the end of the year, but it is expected to involve an additional year or two at least. Flug and Zaken have known each other for many years from their work at the Bank of Israel. Zaken, 48, has received praise and support from Flug for the steps he’s taken in the banking sector.

While Stanley Fischer, who stepped down as governor of the Bank of Israel last June, was more involved in the work of the banking supervisor, Flug has given Zaken a freer hand. As a result, it is now more difficult for bank executives to influence industry policy by appealing directly to the central bank governor.

Zaken is considered a dominant figure in his position. Prior to his appointment to his current post, he served as deputy to banking supervisor Roni Hizkiyahu.

The extension of Zaken’s current term will give him more time to pursue policy priorities, including the implementation of the proposals of an official panel to inject greater competition into the Israeli banking sector.

Bank of Israel Governor Karnit Flug. She called for retirement age of 67 for both men and women.Credit: Reuters

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