Addressing the closing session of the Kinos of dayanim, Rabbi Shmuel Eliyahu Shlita, the chief rabbi of Tzfas, called on the chareidi community to use its numbers and influence to compel the banks in Israel to adhere to Jewish law in their day-to-day operations.
The Rav stated bank profits are in the NIS hundreds of millions, and the rabbonim in many cases give the license by providing a heter iska. At the end of the day, they live by us and we must create banking in a halachic framework, permitting the banks to earn handsome profits, but not the gross profits seen today, at the expense of the people.
The Rav explains the heter iska demands a partnership, between the bank and clients, and this is not the case today. Today, when bank management permit themselves NIS 18 million and NIS 20 million pensions, and levying exorbitant fees, the rabbonim must unit and put banks in their place, in line with the remarks of Prof. Yaakov Neeman, to lead the nation on Torah principles and values.
The banks will never do it on its own, but if the public decides to target a bank, to make demands or leave the bank, it will implement change of collapse. “It is time for banks to charge interest in accordance with a true heter iska, amounts that permit the bank to profit while working with people and doing away with outlandish fees”. A bank must profit the rabbi explains, but after paying salaries and expenses, they remain with NIS hundreds of millions or even NIS billions in profit, and this is unacceptable.
The rav did make some news headlines, but the star of the kinos remains Justice Minister Prof. Yaakov Neeman, who angered the chiloni community by calling for a Jewish State run by Torah Law.
Regarding the minister’s remarks, “We must all come forward and express our support for him, his path, and his remarks, and he is indeed on the correct path”.
In closing, the Rav stated his father’s condition remains serious, with “ups and downs” and now, there appears to be a positive turn of events which all hope will continue.
The tzibur is urged to continue davening for Mordechai Tzemach ben Mazel, Rishon L’Tzion HaGaon HaRav Mordechai Eliyahu Shlita.
(Yechiel Spira – YWN Israel)
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2 Responses
The banks in Israel are rediculous and nickel and dime you for everything. If there was a bank that didn’t, I would switch very quickly. As it is, I do most of my banking in America (online, with relatives) to save myself the fees.
With a true heter iska, it would be impossible for banks to make what are considered loans in a western sense, that is to say, giving money to a borrower and also being “first in line” to get paid ahead of other creditors. Rather the lender would be a “partner”, meaning other creditors get paid first.
With such rules, the recent banking crisis would have been impossible. Of course, with such rules, people with poor credit would have trouble getting comercial loans, which is probably why in halacha loans are a form of charity rather than a commercial investment.