Israel’s largest banks are nearing the end of the second quarter of 2026 having already distributed almost two-thirds of the 3 billion shekel in customer relief they pledged over two years. The voluntary package, adopted in April 2025, was launched after public criticism over massive bank profits during the high-interest-rate period and alongside a special tax imposed by the Finance Ministry.
By the midpoint of the plan, banks had delivered 1.4 billion shekel in benefits to households and small businesses, less than half the target. Since then the pace has accelerated, and by the end of the current quarter, next Tuesday, the total is expected to reach about 1.9 billion shekel, or 63% of the overall commitment. Another 1.1 billion shekel must still be handed out by the end of the first quarter of 2027. The five biggest banks ended the first quarter with 7 billion shekel in combined net profit, after banking sector profits exceeded 30 billion shekel in 2025.
The Bank of Israel approves the programs and checks compliance, while each bank decides its own mix of credit, mortgage, overdraft, current-account fee and deposit benefits. Bank Leumi, which had given only about 20 million shekel in the first quarter, far below its required pace of more than 100 million shekel per quarter, has stepped up sharply. Some customers were recently told they would receive a 700 shekel cash bonus deposited directly into their account if they meet criteria including a salary of at least 5,000 shekel a month, equivalent credit-card spending, and holding either a mortgage for more than a year or a deposit for more than six months. Leumi also offered debt relief to customers in difficulty, including due to the war, and estimates the new benefits will cost 150 million to 200 million shekel. The bank had previously paid a 500 shekel bonus in October, and now expects to finish the quarter with 590 million shekel in cumulative benefits, or 73% of its target.
Other banks have rolled out their own measures. Bank Hapoalim previously gave eligible customers 500 shekel, once offered a first mortgage payment refund of up to 5,000 shekel, and in August last year handed out two of its own shares, with an option to take 100 shekel in cash instead. Mizrahi Tefahot launched “The Overdraft on Us,” waiving overdraft interest up to the mortgage repayment amount or 6,000 shekel a month, whichever is lower, and also offered a one-time “Boost for Businesses” grant of up to 30,000 shekel for northern businesses and reservists. Discount offered 3% credit interest on current-account balances up to 10,000 shekel for customers whose total assets at the bank do not exceed 30,000 shekel. The International Bank offered a 1% overdraft-rate cut and 1,500 Beyond card points in the first quarter, and is now offering 2% interest on balances up to 10,000 shekel.
The article notes that some of the relief is being used as marketing, because the benefits are usually temporary, conditional and hard for customers to distinguish from ordinary promotions. A recent Hapoalim deal freezing the dollar rate at 2.89 shekel for certain online or travel card purchases was even mistaken by some customers as part of the Bank of Israel plan, though it required active sign-up and future card activity. A senior banking source said, “The public should understand that through the relief framework, banks are returning part of the excess profits created by high interest rates. The Bank of Israel does not approve purely marketing moves as part of the framework.”
