Israel Discount Bank
Encyclopedia
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Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
's three largest banks, with 260 branches, and assets of 171 billion NIS (US$38 billion).
History
The Eretz Yisrael Discount Bank was founded on April 5, 1935 by Leon Recanati, a new immigrant from GreeceGreece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
who had been the head of the Jewish community of Thessaloniki
Thessaloniki
Thessaloniki , historically also known as Thessalonica, Salonika or Salonica, is the second-largest city in Greece and the capital of the region of Central Macedonia as well as the capital of the Decentralized Administration of Macedonia and Thrace...
, with two other partners, Yosef Elbaz and Moshe Carasso, in a store at 39 Yehuda Halevi
Yehuda Halevi
Judah Halevi was a Spanish Jewish physician, poet and philosopher. He was born in Spain, either in Toledo or Tudela, in 1075 or 1086, and died shortly after arriving in Palestine in 1141...
St. 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...
. The bank was unique in that it was open to private customers unlike the other few dozen banks operating in Israel at that time who mostly catered only to business people and entities.
In 1952, the name of the bank was changed to Israel Discount Bank.
Major Holdings of the bank include Bank Mercantile Discount, shares in First International Bank of Israel
First International Bank of Israel
The First International Bank of Israel is an Israeli bank founded in 1972 through the merger of several smaller banks. It is the fifth largest bank in Israel...
, the Israel Discount Mortgage Bank, and Visa-CAL.
The bank's president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
is Giora Ofer. Shlomo Zohar is the chairman of the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
.
Money Laundering
In 2004-5 the New York Branch processed US$ 35.4 billion for "originators and beneficiaries that exhibited characteristics and patterns commonly associated with money laundering," yet the US Treasury did not declare the bank a "primary money-laundering concern" under Sec. 311 of the Patriot ActUSA PATRIOT Act
The USA PATRIOT Act is an Act of the U.S. Congress that was signed into law by President George W. Bush on October 26, 2001...
as it had done with the small Banco Delta Asia
Banco Delta Asia
Banco Delta Asia is a Macao-based bank owned by the Delta Asia Financial Group and founded in 1935 by Au Wing Ngok, father of Stanley Au, the current chairman and majority shareholder. It the 10th largest bank in Macao with eight branches and 150 employees.In March 2007, the U.S. Treasury ordered...
, where only US$ 20 million had been alleged. Such a step would have effectively closed down the institute, something obviously not considered politically expedient.
Milestones
- In 1935, bank founded in Tel Aviv.
- In 1949, the first public branch was opened in Haifa.
- In 1962, IDB Bank opened its first overseas branch at 511 5th Avenue in New York CityNew York CityNew York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. - In 1963, IPOInitial public offeringAn initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on Tel Aviv Stock ExchangeTel Aviv Stock ExchangeThe 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....
. - In 1965, the 100th branch was opened.
- In 1972, I.D.B. was the first Israeli bank to install external ATMAutomated teller machineAn automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s. - In 1983, subsequent to the stock scandalBank 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:...
, ownership was transferred to the Government of Israel. - In 2006, control of the bank was tendered to private hands, though the government still owns 31% of shares. The bank's new headquarters is at the Discount Bank Tower on Yehuda HaLevi Street, Tel AvivTel AvivTel 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...
. - January 12, 2010 the government sold an additional 5% of the banks stock of the 25% of the company's stock it owned at the time.