The Olam

Banking & Institutional Capital

One of the most concentrated banking markets among developed economies — now formally declared an oligopoly.

40 storiesUpdated Jul 30, 2026

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Mor: Everywhere in Israeli Savings, First in NothingLead story
Banking & Institutional Capital · Aug 8, 2026

Mor: Everywhere in Israeli Savings, First in Nothing

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Five banks control approximately 98% of Israel''s banking assets. In May 2026, the Israel Competition Authority formally declared them a concentration group. The Bank of Israel publicly opposed the move. That disagreement now sits at the center of Israeli financial regulation.

The five banks — Bank Hapoalim, Bank Leumi, Israel Discount Bank, Mizrahi Tefahot Bank, and First International Bank of Israel — control approximately NIS 3 trillion (approximately $1 trillion) in banking sector assets. Hapoalim and Leumi alone hold approximately 48% of all assets and just over 50% of public deposits. The five together generated NIS 29.5 billion (approximately $7.8 billion) in combined net profit in 2024.

Read the full Banking & Institutional Capital briefing

The Competition Authority''s May 6, 2026 concentration group declaration is the first such declaration applied to the Israeli banking sector. Associated directives take effect May 6, 2027.

The architecture in three layers

Layer 1 — Commercial banking. The top five banks plus Bank of Jerusalem, smaller domestic banks, foreign bank branches, and digital-only entrants (One Zero, Bank Esh Israel). Wave 1 covers this layer in full.

Layer 2 — Institutional capital (forthcoming Wave 2). Five large insurance/pension groups and specialist provident fund managers, together managing NIS 2.75+ trillion as of end-2024.

Layer 3 — Insurance (forthcoming Wave 2). Life, general, and health insurance across the same five integrated groups.

Why Banking matters

Israeli banking underpins every other sector The Olam covers. The mortgage market shapes Real Estate. Institutional capital allocation shapes Sovereign Capital. Defense-industrial banking shapes Defense. Cross-border tax-residency planning around aliyah runs through the banking layer.

Wave 1 spokes

Wave 1 entity coverage

Bank Hapoalim · Bank Leumi · Israel Discount Bank · Mizrahi Tefahot Bank · First International Bank of Israel

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