The Bank of Israel (Hebrew ：בנק ישראל ） was established on December 1, 1954 as the central bank of the State of Israel. It is headquartered in Jerusalem and has a branch in Tel Aviv. The current governor is Karnit Flagg, who is also the first female governor in the history of the Bank of Israel.

History

The State of Israel was declared a state in 1948, but due to the still unstable situation in the country, the bill of the Ministry of Finance to establish a central bank was temporarily put on hold. In August 1948, due to the urgent need for the state to issue currency for market circulation, the "5708-1948 Bank Notes Regulations" (effective August 17, 1948) were temporarily issued, authorizing the Anglo-Palestinian Bank to establish a currency issuance department to issue national currency. Monetary policy, Financial Institution Group supervision and other matters are still handled by the Israeli Ministry of Finance. In March 1951, the Israeli Ministry of Finance established a special committee to prepare for the establishment of a national bank. The following year, in September 1952, the committee submitted a report on the establishment of a national bank. Two years later, on August 24, 1954, the Israeli Parliament passed the Bank of Israel Act. On December 1 of the same year, the Bank of Israel was officially established, taking over the currency issuance department of the former Anglo-Palestinian Bank and the banking supervision department of the Israeli Ministry of Finance. The responsibility for currency issuance and financial supervision was transferred to the newly established Bank of Israel. After 1978, the foreign exchange control authority of the Israeli Ministry of Finance was also transferred to the Bank of Israel. In March 2010, the Israeli parliament approved the new Bank of Israel Act, and the new banking law came into effect on June 1 of the same year.