The Department of inspection of banks in the Bank of Israel issued a new circular on enhancing the efficiency of commercial banks, reducing the number of members of boards of Directors.
Under the new Directive, the number of Directors shall be reduced from 13 to 10. Previously, the Board had already been reduced from 15 to 13.
On the implementation of the Directive to banks given three years. The total number of active Directors in the Israeli banking system will be reduced by approximately 20 people.
In parallel with the reduction in the number of Directors of the Bank of Israel tightens the requirements for them. If earlier experience in the banking sector had to have at least 20% of Directors, after the entry of the Directive into force – not less than one-third of the Directors. In addition, at least one Director must have experience with information technology.
Another paragraph of the Directive requires banks to limit the tenure of Directors. To determine the duration of the cadence each Bank will itself.