Israeli government clashes with governor over banking law

Governor says law “crosses a red line” on independence, but pushes banks to raise rates

The Bank of Israel
Photo: David Vaaknin

Israel’s government said on June 28 it had postponed voting on a draft law after Bank of Israel governor Amir Yaron publicly objected to it.

The proposed law would empower the central bank governor to set minimum interest rates on current accounts, if the finance minister approved. The cabinet’s legislation committee approved it on June 25, and it was originally set for a preliminary vote in parliament on June 28.

Related Bank of Israel warns political turmoil could hit GDP


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