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JERUSALEM (Reuters) – Israel Discount Bank (DSCT.TA) has sold its credit card business CAL under draft rules aimed at boosting competition in the country’s banking and credit sectors. I have to.
Israeli Finance Minister Bezalel Smotrich says he will change regulations to force Israel Discount Bank to sell its business and create new players for the benefit of households and small businesses in an overly concentrated credit market. Stated.
“This step, coupled with the additional steps we will soon introduce, will lead to a competitive credit market and contribute to economic growth,” Smotrich said.
He said Bank of Israel Governor Amir Yaron has approved a draft regulation that requires parliamentary finance committee approval.
A committee including representatives from the Bank of Israel, regulators and the Ministry of Finance has recommended changing the legal definition of what constitutes a bank, and the move would require a discount to sell CALs. It was something.
Discount, Israel’s fourth largest bank, opposed the decision.
“The decision to separate CAL from Discount is … wrong and will certainly not increase competition in the banking system,” it replied.
“However, even in the face of this decision, discounts continue to deliver significant value to shareholders.”
In 2015, the central bank forced Leumi (LUMI.TA) and Hapoalim (POLI.TA), the two largest Israeli banks that control the credit supply market, to sell credit card companies to create competition.
Mr Smotrich also said he would look into the issue of managing “large institutions” at debit card companies.
Reported by Stephen Scheer.Editing by Jane Merriman
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