Bank Leumi
Encyclopedia
Bank Leumi is an Israel
i bank
. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist
movement to promote the industry, construction, agriculture, and infrastructure of Palestine
.
in 1919 wrote: "The British East Africa Company, which administered 200,000 square miles, began with the same amount £250,000." The bank's activities in Palestine were carried out by the Anglo-Palestine Bank, a subsidiary formed in 1902. The bank opened its first branch in Jaffa in 1903 under the management of Zalman David Levontin. Early transactions included land purchase, imports and obtaining concessions. Branches were opened in Jerusalem, Beirut
, Hebron
, Safed
, Haifa
, Tiberias and Gaza
.
The Anglo-Palestine Bank offered farmers long-term loans and provided loans to the Ahuzat Bayit association which built the first neighborhood in Tel Aviv
. During World War I, the Ottoman government declared the bank, because it was registered in England, to be an enemy institution and moved to shut it down and confiscate its cash.
After World War I, its operations expanded. In 1932, the main branch moved from Jaffa to Jerusalem.
During World War II
, the Anglo-Palestine Bank helped to finance the establishment of industries that manufactured supplies for the British army. After the founding of the state of Israel, the bank won the concession to issue new banknotes. In 1950, the bank was renamed Bank Leumi Le-Israel (National Bank of Israel). When the Bank of Israel
was established in 1954, Bank Leumi became a commercial bank
.
The bank was nationalized in 1983, as a result of the Bank Stock Crisis
.
Today, Bank Leumi is Israel's leading commercial bank, with $85 billion in assets and a presence in USA, Switzerland, UK and 18 other countries (as of 2008). Bank Leumi is mainly in private hands, with the government as the largest single shareholder, with 14.8% of the stock (as of June 2006). The other major shareholders are Shlomo Eliyahu
and Branea Invest, which each hold 10% of the stock, constituting the control core of the bank. 60% of the bank's stocks are held by the public and traded on the Tel Aviv Stock Exchange
.
, has been declared a landmark building. Another branch of Bank Leumi on the corner of Ramban
Street in Jerusalem's Rehavia
neighborhood, an example of Bauhaus
architecture, was designed by the German Jewish architect Leopold Krakauer. It was built in 1935 as a private home, and was renovated in 2007 to restore the original facade.
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
i bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist
Zionism
Zionism is a Jewish political movement that, in its broadest sense, has supported the self-determination of the Jewish people in a sovereign Jewish national homeland. Since the establishment of the State of Israel, the Zionist movement continues primarily to advocate on behalf of the Jewish state...
movement to promote the industry, construction, agriculture, and infrastructure of Palestine
Palestine
Palestine is a conventional name, among others, used to describe the geographic region between the Mediterranean Sea and the Jordan River, and various adjoining lands....
.
History
Bank Leumi was founded at the Second Zionist Congress and incorporated in London in 1899 as the financial instrument of the Zionist Organization. The initial capital raised - a total of £395,000 - fell far short of the £8 million target; Nahum SokolowNahum Sokolow
Nahum Sokolow was a Zionist leader, author, translator, and a pioneer of Hebrew journalism....
in 1919 wrote: "The British East Africa Company, which administered 200,000 square miles, began with the same amount £250,000." The bank's activities in Palestine were carried out by the Anglo-Palestine Bank, a subsidiary formed in 1902. The bank opened its first branch in Jaffa in 1903 under the management of Zalman David Levontin. Early transactions included land purchase, imports and obtaining concessions. Branches were opened in Jerusalem, Beirut
Beirut
Beirut is the capital and largest city of Lebanon, with a population ranging from 1 million to more than 2 million . Located on a peninsula at the midpoint of Lebanon's Mediterranean coastline, it serves as the country's largest and main seaport, and also forms the Beirut Metropolitan...
, Hebron
Hebron
Hebron , is located in the southern West Bank, south of Jerusalem. Nestled in the Judean Mountains, it lies 930 meters above sea level. It is the largest city in the West Bank and home to around 165,000 Palestinians, and over 500 Jewish settlers concentrated in and around the old quarter...
, Safed
Safed
Safed , is a city in the Northern District of Israel. Located at an elevation of , Safed is the highest city in the Galilee and of Israel. Due to its high elevation, Safed experiences warm summers and cold, often snowy, winters...
, Haifa
Haifa
Haifa is the largest city in northern Israel, and the third-largest city in the country, with a population of over 268,000. Another 300,000 people live in towns directly adjacent to the city including the cities of the Krayot, as well as, Tirat Carmel, Daliyat al-Karmel and Nesher...
, Tiberias and Gaza
Gaza
Gaza , also referred to as Gaza City, is a Palestinian city in the Gaza Strip, with a population of about 450,000, making it the largest city in the Palestinian territories.Inhabited since at least the 15th century BC,...
.
The Anglo-Palestine Bank offered farmers long-term loans and provided loans to the Ahuzat Bayit association which built the first neighborhood in Tel Aviv
Tel Aviv
Tel Aviv , officially Tel Aviv-Yafo , is the second most populous city in Israel, with a population of 404,400 on a land area of . The city is located on the Israeli Mediterranean coastline in west-central Israel. It is the largest and most populous city in the metropolitan area of Gush Dan, with...
. During World War I, the Ottoman government declared the bank, because it was registered in England, to be an enemy institution and moved to shut it down and confiscate its cash.
After World War I, its operations expanded. In 1932, the main branch moved from Jaffa to Jerusalem.
During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the Anglo-Palestine Bank helped to finance the establishment of industries that manufactured supplies for the British army. After the founding of the state of Israel, the bank won the concession to issue new banknotes. In 1950, the bank was renamed Bank Leumi Le-Israel (National Bank of Israel). When the Bank of Israel
Bank of Israel
The Bank of Israel is the central bank of Israel. It is located in Kiryat HaMemshala in Israel's capital city of Jerusalem, with a branch office in Tel Aviv. The current governor is Stanley Fischer.-History:...
was established in 1954, Bank Leumi became a commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
.
The bank was nationalized in 1983, as a result of the Bank Stock Crisis
Bank stock crisis (Israel 1983)
The Bank stock crisis was a financial crisis that occurred in Israel in 1983, during which the stocks of the four largest banks in Israel collapsed, and were nationalized by the state.-Background:...
.
Today, Bank Leumi is Israel's leading commercial bank, with $85 billion in assets and a presence in USA, Switzerland, UK and 18 other countries (as of 2008). Bank Leumi is mainly in private hands, with the government as the largest single shareholder, with 14.8% of the stock (as of June 2006). The other major shareholders are Shlomo Eliyahu
Shlomo Eliyahu
Shlomo Eliahu is an Israeli businessman and former politician who served as a member of the Knesset between 1978 and 1981.-Biography:Born in Baghdad in 1936, Eliahu made aliyah to Israel in 1950 with his parents and eight siblings. After initially being based in a ma'abara at Beit Lid, his family...
and Branea Invest, which each hold 10% of the stock, constituting the control core of the bank. 60% of the bank's stocks are held by the public and traded on the Tel Aviv Stock Exchange
Tel Aviv Stock Exchange
The Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
.
Landmark buildings
The main branch of Bank Leumi on Jaffa Road, Jerusalem, built during the British Mandate by the German Jewish architect Erich MendelsohnErich Mendelsohn
Erich Mendelsohn was a Jewish German architect, known for his expressionist architecture in the 1920s, as well as for developing a dynamic functionalism in his projects for department stores and cinemas.-Early life:...
, has been declared a landmark building. Another branch of Bank Leumi on the corner of Ramban
Nahmanides
Nahmanides, also known as Rabbi Moses ben Naḥman Girondi, Bonastruc ça Porta and by his acronym Ramban, , was a leading medieval Jewish scholar, Catalan rabbi, philosopher, physician, kabbalist, and biblical commentator.-Name:"Nahmanides" is a Greek-influenced formation meaning "son of Naḥman"...
Street in Jerusalem's Rehavia
Rehavia
Rehavia is an upscale Jerusalem neighborhood located between the city center and Talbiya.-History:Rehavia was established on a large plot of land purchased in 1921 from the Greek Orthodox Church by the Palestine Land Development Company . The area was known at the time as Ginzaria, a native...
neighborhood, an example of Bauhaus
Bauhaus
', commonly known simply as Bauhaus, was a school in Germany that combined crafts and the fine arts, and was famous for the approach to design that it publicized and taught. It operated from 1919 to 1933. At that time the German term stood for "School of Building".The Bauhaus school was founded by...
architecture, was designed by the German Jewish architect Leopold Krakauer. It was built in 1935 as a private home, and was renovated in 2007 to restore the original facade.