Bank of Israel edit
extracted from Wikipedia, the Free Encyclopedia
(using Wikipedia Reflection Script)
|
Bank of Israel edit
|
|
| Bank of Israel בנק ישראל (Hebrew) |
|||
|
|||
| Headquarters | Jerusalem, Israel | ||
|---|---|---|---|
| Governor | Stanley Fischer | ||
| Central Bank of | Israel | ||
| Currency | New Israeli sheqel | ||
| ISO 4217 Code | ILS | ||
| Base borrowing rate | 4.00% | ||
| Base deposit rate | 4.00% | ||
| Website | www.bankisrael.gov.il | ||
The Bank of Israel (Hebrew: בנק ישראל Arabic: بنك إسرائيل) is the central bank of Israel. The Bank of Israel is located in Jerusalem, with a branch office in Tel Aviv. The current governor is Stanley Fischer.
Contents |
At independence in 1948, the power of note issuance was vested with the Anglo-Palestine Bank, which was refounded as Bank Leumi in 1950. Monetary policy and banking supervision remained controlled by the Ministry of Finance.
The Bank of Israel was founded on August 24, 1954, when the Knesset passed the Bank of Israel Act, which passed control over note issuance and banking supervision. Control over foreign exchange was not ceded to the bank until 1978. Since 1985 the Bank of Israel is totally independent and since 1992, the Bank manages its monetary policy so as to meet the inflation target set by the Goverment - wich is today a range between 1 and 3 percent per anuum, concidered as price stability. The Bank also supervize the banking system and manages the Foreingn Exchange Reserves.
The Bank of Israel is rather unusual in that the Governor alone decides whether to change rates or keep them on hold. Prior to this decision, discussions are held at two levels - first in a broad and then in a narrow forum.
The broad forum sees the Governor, Deputy Governor, departmental directors and departmental economists come together, and the economists present current economic and financial conditions and data.
The narrow forum consists only of the Governor, Deputy Governor and the departmental directors, and is far more discussion oriented. The directors present their opinions and recommendations, which the Governor questions and weighs before reaching his decision.
