Israeli Banks Consider Replacing Banking Association CEO Eitan Madmon Following WhatsApp Leak

Israeli banks are reportedly considering replacing Eitan Madmon, the CEO of the Israeli Banking Association. This development was inadvertently revealed when Ron Lavkovitz, chairman of Bank Hapoalim, posted a screenshot on his WhatsApp status showing a conversation among senior banking officials discussing steps to replace Madmon. Although Lavkovitz quickly deleted the post, many banking insiders had already seen it, making the exchange a major topic within the industry.

The leaked messages reveal behind-the-scenes talks outside the formal frameworks of the Banking Association. In the conversation, Avi Zeldman, chairman of Mizrahi Tefahot Bank, suggested holding a closed meeting with bank heads 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 discussions with all banks before advancing the matter, hoping to do so the following week.

The Banking Association, operating for 67 years, represents the banking sector before 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 intense political and public criticism. They cite the 3 billion shekel windfall profits tax imposed by Finance Minister Bezalel Smotrich and the voluntary relief framework banks adopted under pressure as signs of the association’s shortcomings.

Supporters note Madmon’s tenure coincided with an unusually challenging period marked by record bank profits and unprecedented criticism, making it difficult to blame the association alone for the banks’ damaged reputation. In 2020, Bank Leumi left the association to manage regulatory dialogue independently but rejoined about a year ago at Alon’s initiative. The CEO role is highly remunerated, with Madmon’s predecessor earning around 100,000 shekels monthly, though Madmon’s salary was somewhat reduced.

The banking sector is now actively discussing potential leadership changes within the association, signaling possible shifts in how the industry will engage with regulators and the public going forward.