Social Credit Fund 'Agan' and 'Ofek' Seek Banking License
Translated & summarized from Bizportal by baba
Social credit fund 'Agan' and credit cooperative 'Ofek' have applied to the Bank of Israel for a license to establish a non-profit bank. The proposed bank would offer uniform interest rates and reinvest profits into customer services and support.
The story in 5 lines · by baba
- Agan and Ofek seek a banking license from the Bank of Israel.
- The proposed bank would operate as a non-profit entity.
- Uniform interest rates will be offered to all customers.
- Surpluses will be reinvested into customer services and support.
- Agan has a capital base exceeding one billion shekels.
The social credit fund 'Agan', in partnership with the credit cooperative 'Ofek', has submitted a request and business plan to the Bank of Israel's banking supervision department for a banking license. If approved, the plan is to establish a non-profit bank that will not distribute profits or dividends to shareholders. According to the submitted plan, the bank will offer a uniform interest rate to all its customers, regardless of their status, for both loans and deposits.
Any operational surplus generated by the bank is intended to be returned to customers through improved financial terms and additional services. These services include financial guidance and counseling, and providing credit to customers facing difficulties. The initiative is currently in the licensing application phase, and 'Agan' and 'Ofek' are not yet operating as a bank. Upon receiving the license, the new entity will be subject to the Bank of Israel's supervision and regulation.
'Agan' stated that the bank plans to operate using technological systems and aims to compete with the existing banking system. The group reported crossing the one billion shekel threshold in capital and aims to establish equity of 792 million shekels by the end of 2026. Sagi Balasha, CEO of the 'Agan' group, described the application as the beginning of a revolution in Israeli banking, emphasizing the bank's non-profit structure and commitment to customer benefit. He added that the bank will strive to be a leader in fairness and transparency, driving the entire financial system towards more just and transparent practices.
The application stems from 'Agan's' ambition to expand its operations from a social credit fund to a full-fledged banking institution. 'Ofek', operating as a credit cooperative, is expected to contribute its customer base and community structure, while 'Agan' will be the primary entity for capital and financial operations, as outlined in the plan submitted to the Bank of Israel.
