The Bank of Israel today published its financial report for 2006, the central bank’s first report to be audited by an external auditor. The central bank’s results were adversely affected by interest rate cuts and by the shekel’s appreciation against other currencies.
The Bank of Israel said that it published the full financial report as part of its policy to strengthen its internal administrative and auditing systems, and to improve transparency.
The Bank of Israel posted a net profit of NIS 83 million in 2006, compared with NIS 1.4 billion in 2005. The plunge was caused by a NIS 500 million drop in profit on interest from the government and NIS 800 million loss in profits caused by a rise in interest payments to the commercial banks and public.
The Bank of Israel’s total salary costs amounted to NIS 554 million in 2006, the same as in 2005. The salary costs include basic salaries, benefits, regular provisions, and the bank’s updated commitments for employee pensions and vacations. The issue of salaries at the Bank of Israel has been headline grabbing news of late.
Published by Globes [online], Israel business news - www.globes.co.il - on May 31, 2007
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