Bank of Israel Tests Cash System Resilience Amid Earthquake Preparedness

The Bank of Israel recently conducted a national emergency drill simulating an earthquake to assess the resilience of the monetary system during a crisis. The exercise evaluated the capability to continue providing cash and essential banking services even if infrastructure is compromised. According to the Bank of Israel, the drill indicated a high level of readiness among participating entities, emphasizing cash as a strategic national asset crucial during emergencies.

While Israelis typically rely on digital payments, a significant earthquake could disrupt power, communication, and consequently, digital payment systems. In such scenarios, cash becomes vital for purchasing necessities like food, water, and medicine, as transactions would not depend on electronic payment networks. The Ministry of Health's updated emergency preparedness guidelines from March 2026 recommend including cash alongside other essentials such as water, dry food, flashlights, batteries, and portable chargers for several days.

The Bank of Israel clarified that the drill was not a call for the public to withdraw large sums of money or empty bank accounts. Instead, it focused on the banking system's operational continuity. The recommendation to keep cash as part of an emergency kit is a public health directive, intended as a supplement to other emergency supplies, not a replacement for bank accounts.

This exercise is part of a broader national effort to prepare for earthquakes, with 2026 and 2027 designated as years of focus for this scenario by the National Emergency Management Authority. The Bank of Israel's drill specifically examined how banking services and cash distribution would function under disrupted conditions, serving as a reminder of cash's importance when digital infrastructure fails.