At the Israel Forum of Chief Finance Officers annual conference at Tel Aviv University last night, Governor of the Bank of Israel Stanley Fischer said, "The Bank of Israel has recently been the focus of much criticism. A large part of this criticism was unjustified, but some of it was, and we take it seriously. Professional differences of opinion are legitimate, but there are virtually no claims of unprofessionalism. The CFO survey only reaffirms this."
Fischer added, "There differences of opinion and endless proposals over the interest rate, but they are usually on a professional basis. The process of analysis and decision-making at the bank in this area is one of the best I have known. It is an important inheritance from my predecessor."
Fischer rejected criticisms of the Banking Supervision Department. "The people at the Banking Supervision Department are considered to be excellent professionals. This is one of the things noted by the delegation from the International Monetary Fund."
Fischer spoke of Israel's foreign currency reserves, currently at $29 billion and said of the Bank of Israel, "It is considered by international institutions to be one of the best central banks in this field. The people in the foreign currency division are invited to advise central banks elsewhere."
Fischer complained over the fact that he was compelled to deal with wage problems and labor disputes at the Bank of Israel. "Since my entrance into the bank I have been busy trying to fix things and building a more efficient and modern bank together with the bank's management. I am trying to solve the dispute, reorganize and downsize the employees by 10%. Several dozen employees do not currently have enough to do. A new law is required for the Bank of Israel as are far-reaching changes to the decision-making system at the bank, which will derive from the new law. We are also working on excellence incentives at the bank and building a new organizational culture.
Published by Globes [online], Israel business news - www.globes.co.il - on January 3, 2007
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