Supervisor of Banks Rony Hizkiyahu will leave his post when his term expires at the end of the year, and Governor of the Bank of Israel Prof. Stanley Fischer will appoint a search committee to find a replacement. Fischer wants a top-tier outside candidate for the position, and intends to complete the selection by October, in order to provide a decent overlap between Hizkiyahu and his successor.
Fischer wants either a current or former banker, preferably someone with public sector experience, and proficiency with regulations, Basel II - The New Basel Capital Accord of the Basel Committee on Banking Supervision, and risk management to replace Hizkiyahu.
The head of the search committee is still not known, although it will reportedly not be Deputy Governor of the Bank of Israel Zvi Eckstein. Eckstein will apparently not even serve as a committee member.
The race for the next Supervisor of Banks is completely open, and Fischer has no preferred candidate. Bank Leumi head of capital markets division Dan Zidon was Fischer's preferred candidate for Supervisor of Banks in 2006, but refused the job. He is apparently still not interested.
The Bank of Israel would also very much like to see Clal Insurance CEO Shay Talmon, formerly a VP at Bank Hapoalim, to run for the post, but he, too, apparently does not want to return to the public sector, and has no intention of leaving his current job.
Other possible candidates include Excellence Investments CEO David Baruch (51), Accountant General Shuki Oren (51), Leumi Mortgage Bank CEO Shuki Burshtein (5), Bank Leumi head of finance and economics Kobi Haber (42), and Mizrahi Tefahot Bank CFO Eldad Fresher (47).
As for Hizkiyahu, he may head abroad for a while after leaving the Bank of Israel. The performance of Israel's banking sector has drawn international attention, and with the backing of Fischer, Hizkiyahu may go to an international financial institution, such as the World Bank or IMF. Other possibility is that he will seek a senior post in the business or non-financial sector, subject to the mandatory cooling-off period.
When the cooling-off period is over, other sources believe that Hizkiyahu will return to Israel's banking sector in a senior position. He left Discount Bank as head of its corporate division, and the next step is CEO or chairman of a large bank. It cannot be ruled out that he will run for Galia Maor post as CEO of Bank Leumi CEO if the timetable allows it. Hizkiyahu's banking resume, his excellent reputation, and across-the-board appreciation will help him and give him an edge over other candidates.
Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2010
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