The Israeli Government has revealed plans to force the country's two largest banks, Hapaolim and Leumi, to sell their credit card businesses, as part of a strategy to boost competition in banking and make it easier and cheaper for customers to borrow money. According to an internal document seen by Haaretz, Finance Minister Moshe Kahlon is planning to push through legislation that would require banks with more than NIS 1 billion ($150 million) in assets to offer At present Hapoalim, Leumi and Discount control 73% of the credit in Israel.
The Israeli Government has revealed plans to force the country's two largest banks, Hapaolim and Leumi, to sell their credit card businesses, as part of a strategy to boost competition in banking and make it easier and cheaper for customers to borrow money. The banks have two years to sell control of these divisions and a third year to sell their remaining stake. At present Hapoalim, Leumi and Discount control 73% of the credit in Israel.