Institutional Investors Not the Answer to Bank Competition, Says Regulator
Translated & summarized from TheMarker by baba
Spi Singer, Chairman of the Israel Securities Authority, stated that structural solutions are necessary for financial conflicts of interest. He noted that institutional investors manage over NIS 3 trillion and hold significant stakes in major companies. Singer emphasized that five major institutions manage nearly 60% of these funds, giving them considerable market influence.
The story in 4 lines · by baba
- Institutional investors manage over NIS 3 trillion and hold significant stakes in companies, said Spi Singer.
- Five major institutions manage nearly 60% of institutional funds, creating significant market influence.
- Structural solutions are needed to address conflicts of interest in the financial sector.
- The institutions hold an average of 31% of companies in the Tel Aviv 125 index.
Structural solutions are needed to address significant conflicts of interest in the financial sector, according to Spi Singer, Chairman of the Israel Securities Authority. Speaking at an investment houses conference, Singer highlighted the substantial assets managed by institutional investors, exceeding NIS 3 trillion. These institutions hold an average of 31%, nearly a third, of companies within the Tel Aviv 125 index.
Singer noted that institutional bodies possess numerous cross-holdings in corporations, making them key players in business credit, capital markets, and foreign exchange. He pointed out that approximately 60% of these funds are managed by just five entities: Migdal, Clal, Harel, Menora, and Phoenix. This concentration of assets grants these few institutions exceptional power and influence in the market.
