Israeli Banks Halt CEO Replacement at Banking Association Amid Competition Authority Probe

Following a report by Globes revealing the Israeli Competition Authority's intervention, leading Israeli banks have stopped their search for a new CEO to replace Eitan Madmon, the current head of the Banking Association. The banks had been attempting to remove Madmon due to dissatisfaction with his handling of negotiations with the Finance Ministry over a special 3 billion shekel tax imposed on banks, linked to their high profitability during a period of elevated interest rates. This replacement effort, ongoing for several weeks, was unintentionally exposed through WhatsApp messages among bank chairpersons.

The Competition Authority has requested correspondence between the major banks to investigate whether their coordination complied with legal regulations. The Banking Association, a nonprofit organization representing the banking sector's interests in regulatory and governmental matters, has been led by Madmon since 2019. Membership fees from banks amount to millions of shekels annually. The special tax, intended to help close the budget deficit and fund war expenses, was reduced by half from its original proposal but remains a contentious issue.

The banks aim to appoint a new CEO by the end of the year with legal expertise, regulatory knowledge, communication skills, and financial understanding. The Banking Association declined to comment on the matter. The article also notes that Globes maintains a respectful and ethical discourse policy in its reporting.