Consumer8/18/2026

Five Largest Banks Appeal Their Designation as a Concentration Group

Bank Leumi, Bank Hapoalim, Mizrahi-Tefahot, Discount Bank and First International Bank have filed appeals with the Competition Tribunal. They are seeking to overturn the Competition Authority's decision and the accompanying directives concerning bank deposits.

Key facts

•Court: Competition Tribunal of the Jerusalem District Court
•Appellants: Israel's five largest banks
•Directives concerning deposits: four
•Directives take effect: May 2027
•Estimated duration of proceedings: up to two years
•The case number and exact filing date are not stated in the source

What Happened

Competition Commissioner Adv. Michal Cohen designated Israel's five largest banks as a concentration group following an examination that lasted several years. The examination was initiated because of the gap between interest rates on current accounts and deposits, on the one hand, and interest rates on loans, on the other. Bank Yahav, which is 50% owned by Mizrahi-Tefahot, also intends to file an appeal.

What Exactly the Banks Are Appealing

The banks claim that the Competition Authority acted without proper authority and contrary to the position of the Bank of Israel—the direct regulator of the banking system. They maintain that the intervention will not enhance competition and may instead harm competition and customers. They also seek to overturn four directives concerning deposits, which are intended to prevent price discrimination, enhance transparency and make information accessible.

What Remains in Effect Pending the Court's Decision

As long as the appeals are pending, the designation of the banks as a concentration group remains in effect. In theory, the Competition Authority is entitled to impose additional restrictions even during the proceedings. The directives concerning deposits are scheduled to take effect in May 2027; if the proceedings have not concluded by then, the banks will be able to request a postponement.

Timelines and the Regulators' Positions

The Competition Tribunal is part of the Jerusalem District Court, and there are no official timetables for hearing cases of this type. According to estimates by legal professionals in the sector, if cross-examinations are conducted, the proceedings could last up to two years, although the parties may reach an agreement earlier. The Bank of Israel considers the decision excessive and notes that the Banking Supervision Department has already implemented most of the accompanying requirements; the Competition Authority, for its part, relies on the findings of an examination that lasted years.

Possible Outcome

The source does not report an outcome to the proceedings: the appeals have only now been filed. Courts have previously accepted objections to decisions by the regulator, and the dispute that began in 2013 over the designation of the Haifa and Ashdod ports as a concentration group ended in 2015 with an agreement and eased conditions. Nevertheless, these examples do not in themselves determine the outcome of the current proceedings.

What this means for you

At this stage, there are no immediate changes to deposit rules for bank customers: the relevant directives are scheduled for May 2027. If they take effect, they will require the banks to increase the transparency of offers and refrain from discriminating among depositors based on whether they have a current account. The final scope of the obligations will depend on the court's decision or an agreement between the parties.

Find a lawyer for this topic

Case analysis based on court rulings