Non-Profit Bank Seeks Israeli License
Translated & summarized from Alarab by baba
Ogen, a non-profit social credit fund, has applied to the Bank of Israel for a license to establish Israel's first non-profit bank. The bank aims to offer fair, transparent banking services with all profits returned to customers, and seeks to drive competition and fairness in the wider financial sector.
The story in 5 lines · by baba
- Ogen and Ofek seek a license for Israel's first non-profit bank.
- The bank will prioritize customer value over shareholder profit.
- Surpluses will be returned to customers via better terms and services.
- Ogen has over one billion shekels in capital.
- The initiative aims to foster competition and fairness in banking.
The non-profit social credit fund "Ogen," in partnership with the "Ofek" credit association, has submitted a formal application and business plan to the Bank of Israel's banking supervision department for a license to establish Israel's first non-profit bank. This initiative aims to transform Ogen into a fully regulated, stable financial institution operating without a profit motive.
The proposed bank will operate on principles of fairness and transparency, prioritizing customer value over external shareholder profits. It plans to offer uniform interest rates on loans and deposits for all customers, regardless of their identity or status. Any operational surplus will be returned to customers through improved financial terms and expanded services, including financial counseling and credit accessibility for those facing difficulties.
Ogen enters this venture with a strong financial foundation, having surpassed one billion shekels in capital, and has set a target of establishing 792 million shekels in equity by the end of 2026. The new bank intends to operate under the strict regulations of the Bank of Israel, utilizing advanced technology.
Sagi Balsha, Director General of the Ogen Group, stated that the application marks the beginning of a revolution in Israeli banking. He emphasized that as a non-profit entity, the bank is prohibited from distributing profits, with all objectives dedicated to the customer. Balsha added that the bank aims to lead the financial system towards greater fairness and transparency.
