Competition Authority Investigates CEO Replacement Process at Association of Banks
The Competition Authority has requested correspondence from bank chairmen regarding their intention to replace Association of Banks CEO Eitan Madmon, as reported by Globes last week.
Last week, Globes revealed that banks intend to replace the CEO of the Association of Banks, Eitan Madmon, amid dissatisfaction with his handling of negotiations with the Ministry of Finance regarding the windfall tax.
The intention to replace him had been circulating for several weeks but was inadvertently revealed in a WhatsApp group correspondence among bank chairmen. The Competition Authority is now seeking to determine whether the coordination between the heads of the banking system complied with legal requirements.
The Association of Banks operates as a non-profit organization aimed at promoting the interests of the Israeli banking sector. Its activities focus on regulatory affairs and representing banks before various government institutions.
Eitan Madmon, a former CEO of Globes, has served as the Association's CEO since 2019. Membership in the Association requires each bank to pay millions of shekels annually.
Recently, a special tax of 3 billion shekels was imposed on banks, officially intended to help cover the deficit and finance war-related expenses. In practice, the tax was driven by the high profitability of banks during an era of high interest rates. Although the tax was halved from the original plan, it remains a point of contention with the current CEO.
The banks aim to recruit a new CEO by the end of the year with legal expertise, regulatory and communications knowledge, and financial acumen.
"The Association has received a request from the Competition Authority and will respond fully and in cooperation with the Authority, providing all information required by law. The Association strictly and fully adheres to competition laws and all applicable regulations," the Association of Banks stated.
