Israel’s two largest banks published financial statements this week showing both raking in record numbers of shekels. Behind the soaring financials stand millions of Israelis, whose sky-high
interest payments, credit fees and other charges have fueled the unprecedented payday for lenders.

“The banks in Israel enjoy excess profits as they are earning more than they would in a competitive market,” said Moshe Kashi, director of the Finance Department at grassroots advocacy group Lobby 99. “The country’s concentrated banking system is controlled by the country’s five largest banks and if there were more competition, the banks wouldn’t be increasing their income from the interest rate margin – the difference between interest received and interest paid.”

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