Bank of Israel grants Revolut a conditional banking license
Revolut passed an initial regulatory hurdle to establish a new local bank.
The short version
- The Bank of Israel has granted three new Bank licenses since December 2019.
- The move aims to increase competition in the country's banking sector.
The Bank of Israel granted Revolut a conditional banking license to establish a new Bank as the global financial technology giant prepares to enter the local market. Passing the initial regulatory hurdle to launch Revolut Bank Israel allows the firm to move forward with the mechanical, operational, and regulatory requirements needed to start operations for customers, according to The Times of Israel.
This is a first step toward founding the new bank, and alongside the Bank of Israel guidance, they will work to complete the process. That is according to Bank of Israel Governor Amir Yaron. The main path to increasing competition is bringing additional players into the sector, and over the years they worked to remove entry barriers and create the conditions for new players to enter the banking system.
It marks the third license since December 2019 that the Bank of Israel has granted for the establishment of a new bank, as part of an effort to boost competition in the highly concentrated banking sector. New players continue entering the market to challenge traditional lenders. Revolut now faces the task of completing all regulatory steps to open its doors to everyday customers.
Figures as reported by The Times of Israel.
