Kulanu party leader former Likud party Minister Moshe Kahlon on Tuesday, 14 Shevat, announced he will be working to reform the Israeli banking system. Kahlon is credited to breaking the cellular telephone monopoly and he promises to introduce competition and banking reform to significantly lower bank rates, which have most working Israelis up in arms for many years. Kahlon speaks of lowering banking fees for private citizens and small businesses, as well as lowering interest on loans and facilitating the loan process for account holders.

His plan in part mimics what he did in the cellular telephone market some explain, and supporters of Kahlon explain if given the opportunity, Kahlon will make good on his word.

It is explained that just like today many have moved to the new cellular providers including Rami Levy and Golan, this will occur when new banks offer comparable service at a fraction of the price. He hopes to revise regulations to facilitate bringing new players into the local banking market to compel veteran banks to lower rates to remain competitive. This includes a significant reduction in regulations in place today, which make opening a new bank too complicated and difficult a process.

He also wishes to separate credit card companies from the banks, a move that has to date met with the objections of the Bank of Israel. Bank of Israel officials feel such a move will not increase competition for the tycoons will buy up the credit card companies and this will foil plans to open the market.

(YWN – Israel Desk, Jerusalem)