Non-Profit 'Ogen' and 'Ofek' Seek Israel's First Nonprofit Bank License

The non-profit social credit fund 'Ogen,' in partnership with the credit association 'Ofek,' has submitted a formal application and business plan to the Bank of Israel's banking supervision department for a banking license. This initiative aims to transform 'Ogen' into a fully regulated, stable, and non-profit financial institution.

The proposed bank will operate on principles of fairness and transparency, prioritizing customer value over profit maximization for external shareholders. All customers will receive uniform interest rates on loans and deposits, regardless of their identity or status. Any operational surplus will be returned to customers through improved financial terms and a comprehensive service package, including financial counseling and accessible credit for those facing difficulties.

The bank will adhere to the strict regulatory standards of the Bank of Israel and utilize advanced technology. Beyond offering an alternative, the new bank intends to stimulate competition within the broader banking sector and set a new standard for fairness in financial activities, encouraging greater public responsibility and equity from all financial institutions.

'Ogen' Group enters this endeavor with a strong financial base, having surpassed one billion shekels in capital, and has set a target for its equity capital to reach 792 million shekels by the end of 2026. Sagi Balsha, Director General of 'Ogen' Group, stated that the application marks the beginning of a revolution in Israeli banking, emphasizing that as a non-profit, the bank is prohibited from distributing profits and is solely dedicated to customer benefit. He added that the bank will strive to lead in integrating fairness considerations and will act as a catalyst for a more just and transparent financial system.