Israeli Banks Consider Replacing Banking Association CEO Eitan Madmon Amid Internal Dispute

Israeli banks are reportedly considering replacing Eitan Madmon, the CEO of the Israeli Banking Association, following internal discussions that were accidentally revealed by Ron Lavkovich, chairman of Bank Hapoalim. Lavkovich mistakenly posted a screenshot of a WhatsApp conversation among senior banking officials discussing steps to replace Madmon, which he quickly deleted. However, the message had already circulated widely within the banking sector, sparking intense debate.

The leaked exchange shows that behind-the-scenes talks are taking place outside the formal frameworks of the Banking Association. In the conversation, Avi Zeldman, chairman of Mizrahi Tefahot Bank, suggested convening a closed meeting of bank chairmen and CEOs without the association’s staff or Madmon to formulate a plan for leadership change. Uri Alon, chairman of Bank Leumi and president of the Banking Association, responded that he intended to complete consultations with all banks before advancing the matter.

The Banking Association, operating as a nonprofit for 67 years, represents the banking sector to regulators and government institutions. Madmon, a former CEO of the Globes newspaper, was appointed in 2019 after a prolonged selection process. Critics argue that under his leadership, the association failed to improve the banks’ public image amid growing political and public criticism, citing the recent 3 billion shekel windfall profits tax imposed by Finance Minister Bezalel Smotrich as a key failure. They also point to the voluntary relief framework banks adopted under pressure as evidence of the association’s weakened position.

Supporters note that Madmon’s tenure coincided with an unusually turbulent period marked by record bank profits and unprecedented scrutiny, making it difficult to blame the association alone for the banks’ damaged reputation. The CEO role is highly compensated, with Madmon’s predecessor earning about 100,000 shekels monthly, though Madmon’s salary was somewhat reduced. Bank Leumi had left the association in 2020 to engage regulators independently but rejoined about a year ago at Alon’s initiative. The Banking Association has not yet commented on the reports.