The Bank of Israel has published a final, voluntary financial relief plan under which the banking system will provide a cumulative NIS 3 billion in relief and direct refunds to millions of retail customers, with a focus on households and small and micro businesses. The plan takes effect from 1 April 2025 and runs from the second quarter of 2025 through the first quarter of 2027, with benefits distributed on a quarterly basis. The plan allocates NIS 1.5 billion per year and is being implemented by Bank Leumi, Bank Hapoalim, Mizrahi Tefahot Bank, Discount Bank, First International Bank, Mercantile Bank, Bank Yahav and Bank Masad. Relief measures are grouped into packages covering improved remuneration on positive current account balances and short-term deposits, reductions in overdraft interest, fee exemptions or discounts for specific groups, and temporary partial or full relief on monthly repayments or interest on existing credit (including mortgages), typically without requiring customers to apply. Each bank’s first-year financial scope is derived from its relative profitability in 2023–2024, and banks may adjust the quarterly mix of benefits within the plan’s principles provided the total transferred matches their assigned share; the plan also includes relief for groups covered by the Swords of Iron War programme, including reservists. Each participating bank is expected to publish the details of its relief measures and eligible customer groups prominently on its website, while the Bank of Israel will monitor implementation and publish the scope and mix of benefits delivered in practice based on a Banking Supervision Department reporting format. The banks also agreed to work on an automatic sweep mechanism to move balances above a defined minimum from current accounts into yield-generating instruments, with further updates on timing and implementation format to be provided later.
Bank of Israel 2025-04-01
Bank of Israel publishes final NIS 3 billion voluntary bank-funded relief plan for retail customers starting April 2025
The Bank of Israel has launched a voluntary financial relief plan, effective 1 April 2025, providing NIS 3 billion in relief and refunds to retail customers, focusing on households and small businesses, through 2027. Participating banks will offer benefits such as improved account remuneration, fee reductions, and credit relief, with implementation monitored by the Bank of Israel.