Bank of Israel Enables Dual US Listing by Allowing American Accounting Standards

The Bank of Israel has issued a special directive to the banking sector permitting Israeli banks to publish financial reports according to American accounting standards. This move paves the way for Israeli banks to pursue dual listings on US stock exchanges, potentially increasing the liquidity and attractiveness of their shares to foreign investors. The change is expected to boost bank stocks, which have been relatively stagnant since the start of the year but showed a 10% rise in July, leading market indices.

A market source told Globes that American investors are increasingly interested in Israeli banks due to their significant management improvements and strong performance, especially during times of conflict. The source described the Bank of Israel's decision as a highly positive step for both the Israeli economy and banking sector. The development is anticipated to enhance the banks' international profile and investor base.

This directive was circulated to the banking system on the evening of the announcement and is seen as a potential catalyst for a dramatic shift in the Israeli banking market. The Bank of Israel's move aligns with broader efforts to integrate Israeli financial institutions more closely with global markets.