As local currency touches seven-year high against the dollar, manufacturers pivot to focus on cost-cutting strategies
Bank of Israel
The Bank of Israel was created by the Ministry of Finance in 1948 as the state’s central bank. It is charged with managing the monetary policy of the state and providing economic conditions to promote growth and success, but the government retains control over inflation targets as part of its economic policy.
In order to clearly define the relationship between the Bank of Israel and the government and to ensure the independence of the central bank, the Bank of Israel Law was passed in 1954, officially establishing the Bank of Israel, and the bank’s headquarters was established in Jerusalem.
The Governor of the Bank of Israel has a role in advising the government and in shaping monetary policy in the country. In accordance to Knesset law, the Bank of Israel conducts research by monitoring and analyzing developments in the Israeli economy and submits its results in the Bank of Israel’s Annual Report.
Another important aspect of the Bank of Israel is its role in the foreign currency market. By monitoring and assessing developments in Israel’s foreign currency market, the Bank of Israel conducts the exchange rate policy and publishes the representative exchange rate of the New Israeli Shekel against foreign currencies.
The current Governor of the Bank is internationally renowned economist Stanley Fischer. With Fischer’s guidance, the Bank of Israel helped the Israeli economy overcome the global economic downturn quicker than other Western nations, and his policies are credited with helping the Israeli economy continue to grow.
The central bank just released a limp report into the Bank Hapoalim affair, in which it mildly chastised the bank for a scandalous cover-up after an employee claimed she had been harassed by the CEO. Its indicative of its attitude toward big banks in an era of corruption and cronyism
Bank supervisor orders head of audit committee to step down, but takes no other action against Bank Hapoalim
Israel's central bank cites problems in Arab towns like disorderly land registries and difficulty repossessing homes as the main barriers to getting mortgages
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Sales down 7% on equivalent period in 2016, with number of homes bought as investments down 3%
But Hedva Ber is looking at the symptom and ignoring the disease: the banks shaky corporate governance, their political power and the regulators fear to confront them
Option would solve problem she faces selling half her Hapoalim stake and earn her richer return on investment