Bank Leumi president & CEO: 'The government must eliminate unnecessary bureaucracy'

“The past year has been particularly complex for Israeli society and the Israeli economy in particular. The high interest rate environment, the socio-political unrest, and, of course, the war that has been going on for several months – all these have dramatically affected each and every one of us,” said Bank Leumi President and CEO Hanan Friedman, who was the first speaker at the economic conference held by the Jerusalem Post Group, Maariv, and Walla at the Carlton Hotel in Tel Aviv.

“We all hope that the effects of the war will be short-lived and that the economic rebound that will follow will be significant. One of the basic conditions for realizing this scenario is a strong financial system with significant surplus capital and liquidity that help the economy overcome even more challenging periods,” Friedman added. “Recently, we have witnessed a confrontational, populist, and sometimes inflammatory discourse towards the financial system, particularly against the banks. In this context, I must say that we cannot throw the baby out with the bathwater. We all have one goal: to help the Israeli economy maintain its resilience even during this difficult period and to ensure the ability of households and businesses to get through the crisis. Only in this way will we ensure Israel’s economic future.”

Friedman said that reckless and irresponsible attempts to harm the resilience of the Israeli banking system “are liable to lead to irreversible and longstanding damage to the financial system. Promoting competition – yes. But it must be based on equal rules. Damage to the system’s resilience can undermine the foundations on which the Israeli economy is based and cause serious damage, which can affect everyone –  households, the self-employed, and small and large businesses alike.”

Dealing with excess bureaucracy

Friedman said that an essential aspect of creating the conditions for healthy economic growth is dealing with excess bureaucracy. “Precisely at this time, when the Israeli economy needs significant levers to ensure its growth, eliminating excess bureaucracy can be an excellent substitute for other, much more expensive measures that the government will have to take one way or the other.”

He explained that several years ago, a dedicated authority was established to ease the bureaucratic burden. Its budget in 2024 is more than NIS 20 million. So far, this authority has not published any reports on its achievements. “We all suffer from the lack of these achievements. It is appropriate to make bold decisions in this context, set challenging goals to cut most of the bureaucracy, and measure each public authority in a short and binding SLA.

“There is a unique entrepreneurial spirit in Israel,” he concluded, “that constantly strives to change and update itself. Israelis are early adopters of digital technology. Therefore, a government decision to eliminate unnecessary bureaucracy will immediately create the economic boost we all hope for.”