Bank of Israel Governor Stanley Fischer, in a rare interview, told Voice of Israel Radio on Sunday morning that no Israeli banks are in danger of collapse.
Saying he is worried only by self-fulfilling prophecies, Fischer noted that the financial network in Israel in general "is very very strong, and especially the banks."
A former Chief Economist of the World Bank, Fischer, who will turn 65 next month, became Governor of the Bank of Israel over three years ago. As required for the post, he became an Israeli citizen under the Law of Return, which grants Jews automatic citizenship - though he retained his American citizenship. 
"Now is the time to deal with the crisis; conclusions about the structure of the economy can be learned later."
Regarding the proposed U.S. $700 billion bailout plan for the American economy, Fischer had positive things to say: "The plan deals with the root of the crisis, and it could be that this will the last, or near-last, step that the government will have to take."
He took a cautious approach to the effects Israel might feel from the current American economic crisis: "We have to be ready to deal with the ramifications of this situation... We can't know where, in the long range, the changes in the world will harm our financial network. We have to simply be ready to deal with them with the measures that we take, including very effective supervision by the Supervisor of Banks and helping the capital market. We are in daily contact with the banks, and we feel that they are in a good position to deal with the matter - and we, for our part, will be ready to take whatever actions are necessary."
"The only thing I am very worried about," Fischer said, "is that our financial network is very dependent upon trust. But if someone starts rumors that this or that institution is in trouble, then he himself thus causes the troubles that he spoke about. In our opinion, there is no basis for any rumors of this nature."
In light of politicians' calls to make changes in the 2009 budget as Kadima leader Tzipi Livni tries form a new coalition government, Fischer says no: "It would not be a good idea to re-open a budget that was approved only a month ago; that would broadcast irresponsibility."
Asked what about the proposed reforms in the Israeli economy, Fischer said, "Now is the time to deal with the crisis. Conclusions about the structure of the economy can be learned later."
The Governor said that rumors of troubles facing large Israeli borrowers such as Dankner, Levayev and others are untrue and irresponsible, and even alluded to the identity of those who started them.
A decision by Fischer several months ago to purchase first $25 million a day, then $100 million a day, has been credited with stopping the dollar's downward climb compared with the Israeli shekel. Fishcer said he has no intention to continue this policy after Israel's dollar reserves hit $40 billion - which could be very soon. "A Central Bank never says never, however," he addeed.