In a recent interview with the Walla portal, the Chairman of the Bank of Israel, Professor Amir Yaron, expressed his concerns over the actions of certain politicians. More specifically, he mentioned that Finance Minister Bezalel Smotrich should exercise control over his fellow party member, Ohad Tal, who is the Chairman of the Knesset Commission on Public Initiatives.
Professor Yaron emphasized his concern over the potential for irresponsible initiatives by Knesset members to cause a banking panic if they are not properly curbed. His particular concerns were triggered by an initiative proposed by Tal that would permit lending and deposit activities by entities that do not fall under the control or supervision of the Bank of Israel or the Capital Market Supervision Authority.
Additionally, Professor Yaron was displeased with another initiative proposed. This one suggested that the Bank of Israel’s monetary commission, which is responsible for setting the level of the discount rate, should consider competition factors when making its decisions. This idea, in Yaron’s view, shows a fundamental misunderstanding of the role and responsibilities of the monetary commission.
Professor Yaron expressed his disappointment with the deputies’ understanding of their actions, stating, “Such initiatives indicate a lack of understanding among deputies of what they are doing”.
