Regulatory Alerts2025-05-19
Banking Ordinance, 1941
The Governor of the Bank of Israel issues this Ordinance to regulate banking corporations, restrict the unauthorized use of the word 'bank', and establish the Supervisor of Banks with powers to inspect institutions and enforce proper conduct. The legislation empowers the Supervisor and Governor to issue directives, demand rectification of defects, and appoint administrators or special examiners to safeguard financial stability and customer interests. It further mandates the reporting of embezzlement by banking corporations and prescribes criminal penalties, including imprisonment and fines, for violations of supervisory directions and licensing requirements.
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