Bank of Israel Grants Revolut Conditional License to Establish Israeli Bank

The Bank of Israel granted a conditional banking license and a control permit on November 10 for Revolut Israel Bank, which is being established by the international financial group. Governor Amir Yaron and Supervisor of Banks Daniel Hahiashvili announced the approvals after the application was examined and the Licensing Committee was consulted. Yaron said, ‘This is a first step toward establishing the new bank.’ The approvals allow Revolut to complete the regulatory, technological and operational preparations required before activating its banking license. Banking Supervision will oversee the establishment process and the milestones needed to activate the conditional license and lift its restrictions. Hahiashvili said the group offers payments, foreign exchange, credit and deposits, and that its entry could expand competition and the services available to households and businesses. Dr. Shmuel Ben-Zvi, chairman of Revolut Israel Bank in establishment, said the bank would adapt the group's international experience and capabilities to the Israeli market. Uri Nathan, its chief executive, said its aim was to create banking competition through a digital financial-services environment competitive with those abroad. The central bank said this was the third license granted for a new Israeli bank since December 2019, following about 40 years without a new bank opening. Yaron said he had met Revolut's leadership in London in late 2022 to encourage its entry into Israel. He linked the current decision to efforts to lower entry barriers and bring additional competitors into banking.