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Banking (Licensing) Law, 5741-1981

חוק הבנקאות (רישוי), תשמ"א-1981

Published: 1981-04-26Consolidated Hebrew text as of 2026-08-03 · Last amended 2026-08-02✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

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Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

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Chapter VII: Miscellaneous

Penalties§

49.
(a)A person who has contravened any of the provisions of sections 13, 21, 34, 35b(b) to (d), 36k, 36m – with respect to the application of sections 34 and 35b(b) and (c) therein, or 47e, is liable to five years' imprisonment or a fine of double the fine prescribed in section 61(a)(4) of the Penal Law, 5737-1977 (hereinafter – the Penal Law).
(b)A person who has contravened any of the provisions of sections 10 to 12, 20a, 23, 23a, 24, 24a, 24b, 27b, 27c, 27e, 27f, 28, 31, 35a, 36, 47c or 47d, or the directives of the Governor or the Supervisor under sections 9(b), 35, 35b(e) and (f), 36l(d), 36m – with respect to the application of section 35b(e) and (f) or 36, is liable to two years' imprisonment or a fine of four times the fine prescribed in section 61(a)(3) of the Penal Law.
(c)A person who is not a banking corporation but engages in the receipt of monetary deposits or in the issuance of securities as referred to in section 21(a)(2) and has transferred the funds as credit or in another form to another person who is not a banking corporation or an auxiliary corporation but engages in the granting of credit – both shall be guilty of an offence under section 21.

Liability of a Director and General Manager for Offences of a Banking Corporation, Institutional Investor and Acquirer§

50.

A person who was a director or general manager of a banking corporation or of a holder of a stability payment services licence, and in respect of an offence under section 49(b) – of an institutional investor, at the time when the banking corporation, the licence holder as aforesaid or the institutional investor, as the case may be, committed an offence under this Law, shall be deemed a party to the offence and may be convicted of it, unless that person proves one of the following:

(1)the offence was committed without that person's knowledge and his or her position did not require that person to have known of the offence;
(2)after learning that the corporation, the licence holder as aforesaid or the institutional investor, as the case may be, was about to commit the offence, that person took all possible measures to prevent it from committing the offence.

Approval of the Attorney General§

50a.

Where a banking corporation has not fulfilled an obligation imposed upon it under the provisions of the Banking (Licensing) (Amendment No. 11) Law, 5756-1996, concerning the reduction of its holdings in a real corporation that it lawfully held on the 12th of Iyar 5756 (1 May 1996), no indictment shall be filed under sections 49 or 50 except with the approval of the Attorney General.

Civil Fine§

50b.
(a)Where the Supervisor has reasonable grounds to believe that an act or omission has been committed that constitutes a contravention of any of the provisions of sections 10 to 12, 20a(a), 23, 23a(a), 24(a) or (b), 24a(a), 24b, 28(a), 28a or 31(a), or that constitutes a contravention of a directive of the Governor or the Supervisor under sections 35b(e) and (f), 36m – in respect of the application of section 35b(e) and (f) or 36n, the Supervisor may impose on the person who committed the act or omission a civil fine at the rate of half the fine prescribed in section 49(b).
(b)The Supervisor shall not impose a civil fine lower than the civil fine prescribed in this Chapter, except pursuant to the provisions of subsection (c).
(c)The Governor, in consultation with the Minister of Justice, may prescribe categories of cases, circumstances and considerations by reason of which the Supervisor may impose a civil fine lower than the civil fine prescribed in subsection (a), and the maximum reduction rates to be prescribed.
(d)The civil fine shall be according to its updated amount on the date of the demand for its payment, and if an appeal has been filed and the court hearing the appeal has ordered a stay of its payment – according to its updated amount on the date of the decision on the appeal.
(e)Payment of a civil fine shall not derogate from a person's criminal liability for the contravention.
(f)Where an indictment has been filed against a person for an offence under this Law, that person shall not be liable to payment of a civil fine in respect thereof, and if payment has been made – the amount paid shall be refunded together with shekel interest as defined in the Interest and Linkage Law, 5721-1961, from the date of payment until the date of refund, and the provisions of that Law shall apply in respect of such interest, with the necessary modifications.
(g)The provisions of sections 14j to 14o of the Banking Ordinance, 1941, shall apply, with the necessary modifications and with the following modification, to a civil fine under this section: for the purposes of section 14j, the definition of "repeated contravention" shall be read as follows:

"'repeated contravention' – a contravention of any of the provisions listed in subsection (a), within two years of a previous contravention of the same provision in respect of which a civil fine was imposed on the contravener or in respect of which the contravener was convicted.".

Cooperative Society as a Banking Corporation§

51.

The provisions of this Law shall apply to a cooperative society as if it were a company, with the necessary modifications according to the matter.

Application of Provisions Regarding a Receiver§

52.

The provisions of Chapter V of the Execution Law, 5727-1967, shall apply to a receiver appointed under this Law, with the necessary modifications.

Implementation§

53.

The Minister of Finance is responsible for the implementation of this Law and may make Regulations on any matter relating to its implementation.

Commencement§

54.

This Law shall commence on the 26th of Adar Bet 5741 (1 April 1981).

Publication§

55.

This Law shall be published within thirty days of its adoption by the Knesset.

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First Schedule (Section 7)

First Schedule (Section 7) — table
Type of corporationAmount
—Bank—NIS 10,000,000
—Foreign bank—An amount in foreign currency equal to NIS 10,000,000
—Joint services company—NIS 100,000

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Second Schedule (Section 24a(a))

1.§

Agriculture, forestry and fishing (01, 02, 03, 09)

2.§

Coal and oil mining, metals and quarrying, and non-metallic minerals (10 to 13 and also 26)

3.§

Food (14–15)

4.§

Beverages and tobacco (16)

5.§

Textiles, clothing and footwear (17 to 19)

6.§

Wood and furniture, paper and publishing and printing (20 to 22, 36)

7.§

Chemical products, oil refining and plastics (23 to 25)

8.§

Base metal and metal products, and machinery (27 to 31)

9.§

Electronic and electrical components (32 to 34)

10.§

Transport equipment (35)

11.§

Diamonds, jewellery and other industry (37 to 39)

12.§

Electricity and its distribution (40)

13.§

Water and its distribution (41)

14.§

Construction (45, 46)

15.§

Wholesale trade (51)

16.§

Retail trade (50, 52, 53)

17.§

Hotels, accommodation services and restaurants (55, 56)

18.§

Land transport (60, 63)

19.§

Sea transport (61)

20.§

Air transport (62)

21.§

Storage, postal services and communications (64 to 66)

22.§

Banking and financial institutions, excluding insurance (67, 68)

23.§

Insurance (68)

24.§

Real property (rental and services) (70 to 76)

25.§

Education, health, cleaning and personal services (80, 6 to 85, 90 to 97).

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