An entrepreneurial company was granted a conditional license and control permit by Israel's banking regulator on Sunday to launch a new online bank, the country's second in three years and the second to enter the highly concentrated banking market.
The new institution known as Esh Bank Israel has passed inspection, according to the Bank of Israel's financial supervisory division.
According to the statement, the approvals will enable the founders to proceed and finish the mechanical, operational, and regulatory preparations necessary for the launch of the bank's operations.
These involve employing a management team and bank personnel as well as concluding the phases of new technology creation and testing.
The central bank estimated that it will take around a year and a half to open the bank.
Shmuel Hauser, the chairman of Esh, acknowledged that there was still much work to be done but added that the bank would provide competitive interest rates and commission-free banking services.
One Zero Digital Bank became the first new Israeli bank in 43 years in January of last year after receiving the final regulatory permission for a full banking license.
The two largest banks in Israel control more than half of the sector's assets, and the country's banking system is extremely concentrated and dominated by a small number of institutions.
Amir Yaron, governor of the Bank of Israel, said, "We see great importance in the entry of banks and additional new players into the banking system in Israel, so they contribute to increasing competition and innovation in the financial system."
By fLEXI tEAM