Regulatory Alerts2026-08-31
Added · Updated
Banking (Licensing) Law, 5741-1981
The Banking (Licensing) Law, 5741-1981 establishes the legal framework for licensing banking corporations in Israel, requiring all such entities to operate under a license issued by the Governor of the Bank of Israel. The law defines key terms including 'means of control,' 'principal shareholder,' and 'small bank,' and mandates minimum capital levels set in the First Addendum, which can be increased by order. It outlines the Licensing Committee's composition, the considerations for issuing licenses, and the specific fields of activity permitted for banks, including restrictions on payment card operations for banks with wide or medium scopes of activity. Furthermore, the law details procedures for license revocation, continued supervision of revoked entities, and limitations on controlling non-financial corporations.