"The formation of a new economic-technological order in the world, the vote on Brexit in the UK and on the constitution in Italy, the change of presidents in the US, the upcoming elections in France and Germany next year, new trade agreements - all these will affect the Israeli economy. This is the time to think and to plan how we all act together to reposition the Israeli economy," Bank Hapoalim (TASE: POLI) CEO Arik Pinto at the opening plenary session of the Globes Israel Business Conference.
Pinto sharply criticized the many measure instituted against the banks in the past two years. "The past two years have seen upsets for the banking industry. In this period we have been through a long series of reforms meant to benefit the industry and consumers, but in the end we shall that they are liable to throw out the baby with the bathwater," he said.
Pinto listed planned steps against the banks, among them, "A 50% cut in credit limits that the two big banks allow their customers on credit cards, the forced sale of the banks' holdings in the stock exchange, with a 100% tax on the profit, proposals for interest rate ceilings, and many other examples of populist legislation and excessive regulation, which are frightening off investors and generating negative and destructive sentiment towards the Israeli economy."
Pinto criticized the actions of some regulators and said that there was incitement against the banking system. "We have encountered unbridled incitement against the banking system, in my view as part of attempts to divert public discourse from the real problems of the economy and the country," he said, adding, "As the leading bank we welcome competition, but it seems to me that some regulators and legislators are inclined to run to further headline-making new measures, instead of stopping for a moment and examining the cumulative effect of previous measures. They forget the critical role that the banks play in fostering growth in the economy and creating financial stability. Regulation must be responsible and realize that the good intentions are liable to lead to damage and harm to customers: reduced supply of credit to large businesses, a drain of talent, and harm to the bank's ability to become more efficient."
Published by Globes [online], Israel business news - www.globes-online.com - on December 11, 2016
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