Israel Banking & Financial Services Report Q4 2017
BMI View: Israel has a highly developed, but highly concentrated, banking and financial services industry with a small number of large banks and insurance companies controlling almost 60% of the market. Many of these banks are at least part-government owned, providing some stability though their dominance drives down competition in the market and increases costs for Israeli customers. Plans to increase competition in the credit card sector should help to lower prices and increase options for consumers by introducing smaller companies into the market. However, any further plans to break up banks could lead to instability in the market.