Fischer rebukes bank execs over high salaries

Bank of Israel Governor Stanley Fischer told bankers their policies were not transparent enough and competition was inadequate.

In an extraordinary meeting with Israel's bankers last week, Governor of the Bank of Israel Prof. Stanley Fischer rebuked them over high salaries and called on them to take fewer risks in the mortgage market.

Although Fischer was polite during the meeting, his words were biting. He told the bankers that their policies were not transparent enough and that competition was inadequate. He called on the banks to reduce the number of fees to benefit customers, and criticized executives' salaries, which he said were out of proportion.

Fischer concluded by calling on the bankers to act with maturity and responsibility to maintain the banking system, and warned that he should not have to be their guardian.

The Bank of Israel said in response, "This was a working meeting. We decline to comment on the content."

Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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