Regulator opposes Israeli banks increasing dividends

According to estimates in the banking system, the five largest banks: Li -Daily Bank (level: room), Hapoalim Bank (level: Poly), Mizrahi Tefahot Bankand Israel Discount Bank (level: ) And The first bank of Israel International (level:ftin1; The feat.The year will end with a total net profit of about 30 billion New, an increase of a total net profit of about 23 billion New in the first nine months of last year. A source in the banking system said: “The banks that are expected to offer great capital surpluses have started exploring the bank’s supervisor for his willingness to increase the ceiling. It seems hesitant to allow them to visit.”

The banks ’desire to reward the shareholders, who eventually constitute a large part of the public in Israel through their long -term savings, can reduce their capital to a level that they are afraid of regulators to raise their threshold of their risks to what is necessary. In the first nine months of last year, the five bank reports showed that high interest rates continue to benefit from them. The same applies to the high inflation environment, given that a large part of the loans they offer is also linked to the consumer price index. The financial data season in banks is expected to start this week, on Thursday, with the deployment of the financial report submitted by Mizrahi Tefahot. Hapoalim (3.3), Leumi (4.3), Discount (11.3) and the first World Bank (12.3) will be followed.

Bank of Israel replied: “During this period, when the geopolitical uncertainty and economic effects are still with us, it is important that banks run their capital conservative.”

It was published by Globes, Israel Business News – En.globes.co.il – on February 24, 2025.

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