The Bank of Jerusalem was established in 1963 on the initiative of Zalman Shoval – later a member of the Knesset and Israel’s ambassador to Washington – and focused on providing mortgages. In 1992, the bank held an initial public offering on the Tel Aviv Stock Exchange. During that decade, it expanded its real estate activity, which constituted 40% of its credit loans. This percentage, along with some of its clients’ solvency issues, led the Bank of Israel to order the bank to temporarily halt its borrowings activities in this area.
In 1997, the bank received a “financial institution permit”, which enabled it to extend its offering. In 1998, it received a “commercial bank permit”, as part of its efforts to enter the market for business borrowings, as well as loans and savings for the private sector. The bank is under the control of Yitzu Company, which is controlled by the Shoval family and members of the Mayer family, who built the Shalom Tower in Tel Aviv. Bank of Jerusalem is the last small bank to remain independent after 2010, following the Bank of Israel’s initiative to merge the remaining small banks.
(From Barlev collection of Securities Certificates)
