The government of Israel has approved the creation of a new regulatory authority that will be responsible for supervising all non-bank lenders including new credit card issuers.
The new Capital Markets, Insurance and Savings Authority would be headed by the finance ministry.
The authority would be an independent body, with its own budget and ability to make decisions.
It would be led by a commissioner, who would be appointed for a five-year term.
The new move forms part of a broader plan by the finance ministry to make the credit market more competitive by forcing banks to dispose of their credit card businesses. The plan proposes transfer of the regulation of the credit card units to the finance ministry from the Bank of Israel.