The Knesset has approved an amendment to a Bank of Israel bill calling for the establishment of a financial stability committee to support the stability of the financial system and its regular activity.
This will be done through coordination between the financial supervisory authorities - the Banking Supervision Department, the Capital Market Authority, Insurance and Savings, the supervision of financial service providers regulated by the Ministry of Finance, the Supervisor of Payment Systems and the Securities Authority - and between them and the Bank of Israel and the Ministry of Finance. Under the law, the committee has the authority to warn the financial supervisory authorities when it identifies a real systemic risk and to recommend measures to prevent or reduce it, and report to the prime minister and the finance minister.