Israels Five Largest Banks Found to Be in Violation of Competition Laws
Israel's five largest banks, including Bank Hapoalim and Bank Leumi, are in violation of competition laws for forming a cartel in retail banking.
Jerusalem, 6 May, 2026 (TPS-IL) — Today, Wednesday, the Competition Commissioner announced that, in accordance with its authority under the Economic Competition Law, it determined that the five largest banking groups in Israel – Bank Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, Discount Bank and the International Bank – together constitute a concentration (cartel) group in the retail banking services basket industry, and that it imposed provisions on the members of the group in the field of deposits.
According to the Competition Law, the Competition Commissioner may determine that a limited group of business managers constitutes a concentration group if the industry in which they operate has conditions for little competition or there is little competition in practice. Within this framework, the Commissioner is authorized to impose instructions on the members of the group, to the extent required to prevent harm or fear of actual harm to the public or to competition in the industry.
As of the end of 2024, the five largest banking groups together control approximately 98% of the banking system’s assets, with the two largest groups, Leumi and Hapoalim, together holding approximately 48% of the assets.
