Bank Hapoalim (TASE: POLI) today announced it has cut its checking account fees to NIS 10-32 per month. The bank made the announcement ten days before the Bank of Israel's deadline for bank account fees.
The reduction in fees will reduce Bank Hapoalim's annual revenue by tens of millions of shekels, an immaterial amount, given its NIS 2 billion profits. As Israel's largest bank, its decision to lower checking account fees will force the other banks to follow suit.
Supervisor of Banks David Zaken has intervened in the matter of bank account fees, capping the fee for the basic track to NIS 10 per month. He took the step after rejecting the banks' proposed fees as too high,
Bank Hapoalim got the message, and cut prices for other account plans. The expanded track will cost NIS 22 a month, from the current maximum cost of NIS 132.50. This track, while open to both households and small businesses, mainly targets the latter, as they have many transactions in their accounts. The bank says that current average monthly fees for small businesses are NIS 57; the new fees are 60% less.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2014
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