The Supervisor of Banks today submits to the Knesset’s Economics Committee the periodic report for the first half of 2021 on the prices of common banking services for households.
The report shows that in 2021 the downward trend in the ratio of total commission income to banking system assets continued. This trend began in 2008 and continues to this day when the cumulative decline reached a rate of 45%. In addition the corona virus affected commission income in the first half of 2021.
The bulk of the amount paid by the public was for securities activities (35%), commissions for managing a current account (19%), credit (16%) and debit cards (16%).
The average cost of running a current account and holding debit cards increased by 6% compared to the previous year and stood at NIS 23.8 per month, but decreased by 11.5% compared to 2019 before the corona period. At that time, these fees were NIS 26.9 per month.
Of this cost, NIS 10.7 is attributed to the management of the current account itself, a decrease of 5.5%, which is mainly attributed to a 35% decrease in the amount of “no insufficient coverage” party chargeback operations. The current account is about 47%.
The cost of debit cards amounted to NIS 13.1 per month, an increase of 18% compared to 2020. The increase is mainly due to an increase in income from transaction commissions and foreign exchange withdrawals following a return to a certain routine after the corona crisis.
The Supervisor of Banks, Mr. Yair Avidan: “I reiterate my call for the public to use direct channels and digital means and examine the feasibility of servicing the routes for them, thus saving costs. I also call on the public to compare the quality and cost of services between the various banks, including using the “Bank ID” report that is expected to be presented to customers on the banks’ websites on 28 February. It is also worth noting that several months ago, the system was launched that allows customers to move easily and conveniently, which has been under supervision for a long time. The system is now available to customers and can help promote competition and the well-being of the banking consumer. “In these days when the Corona virus crisis is still giving its signals, I call on the banking system to be more sensitive, especially in dealing with consumer issues that are at the heart of public sensitivity, such as the prices of banking services.”
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