Banks Lose Majority Control on Masab Board of Directors
As part of regulatory efforts to boost competition, major Israeli banks have reduced their representation on the Masab board. New directors from fintech and digital banking sectors have been appointed.
The regulatory move to weaken the grip of major banks on the Masab (Banking Clearing Center) has reached a new milestone. On Saturday, a reshuffle of the board of directors took effect for the company that manages the national payment infrastructure, through which salaries, standing orders, and money transfers of Israeli citizens pass.
As part of this process, Mizrahi Tefahot and Leumi — two of the five major banks — lost their board seats. They were replaced by representatives from the credit card company Max and the digital bank Esh. The departing directors are Micha Argaman, head of banking operations at Mizrahi Tefahot (who served since 2018), and Amir Shmuel Rosen, head of the AI center at Bank Leumi (appointed in late 2024). The new appointees are Guy Shabtai from Max and Roi Freiberg from Bank Esh.
This step is part of an ongoing process led by the Competition Authority, headed by Michal Cohen, and the Bank of Israel’s Payment Systems Oversight. The goal is to prevent the five major banks, which own the company, from using their board power to stifle competition, block fintech entry, or create hurdles for new players. These changes stem directly from the Competition Authority and Competition Tribunal’s decision to cancel the historical exemption from restrictive arrangements previously granted to Masab’s founding banks.
While management control has shifted, the long-term ownership structure remains under review, with the Competition Tribunal extending the banks' temporary permit until February 1, 2027. In September 2025, the board was expanded from eight to 11 members under Chairman Amir Shapira (Bank Hapoalim). The five major banks now hold only three seats (Bank Hapoalim, Discount, and First International Bank), while the remaining eight members represent independent and non-bank entities.
Masab serves as the central financial artery of the Israeli economy. According to 2025 financial statements, the company cleared credit operations totaling approximately 5 trillion shekels and debit operations totaling 1.76 trillion shekels. Although 72.5% of Masab's revenue still stems from the five major banks, policy design, tariff setting, and infrastructure development are now managed by a board with a non-bank and independent majority.
