yaron amir : competition in the banking system speech by mr yaron amir, governor of the bank of israel, at the banking supervision department conference on competition in the banking system, jerusalem, 2 april 2019. * * * summary : some of the significant measures and reforms aimed at enhancing competition have already come to fruition, and others are in the process of coming to fruition. there are additional supporting processes that are required now, such as the development and application of financial and technological instruments, and the deepening of the capital market, which will contribute to competition in the credit market and increased consumer well - being as they advance. these processes are becoming possible mainly in view of the development and application of advanced technologies that were not available until just recently. removing information gaps, leveraging existing information, and utilizing technological ability for informed analysis and learning in real time about the credit market will enable more correct pricing that is more in line with the risk to various layers of the credit market — households and small and medium businesses — thereby contributing to development of the market. the market must be developed while managing risks and developing proper regulation, in order to make sure that, despite the risks, the benefit from these processes will make them worthwhile. two financial instruments that should be advanced in order to make the capital market more sophisticated and deeper, and which will contribute to the continuing increase in competition, are securitization and long - term interest rate derivatives. * * * good morning. first, i would like to congratulate the banking supervision department on this conference, and welcome the honored guests. the issue of competition in the financial system is one that occupies many people in israel and abroad. advancing competition has been a top priority of the public and of the bank of israel in recent years, and for good reason. advancing competition in the financial system, when done properly, has many positive effects on all entities in the economy, first and foremost the broad public. today, i would like to discuss various aspects that can enhance competition in this market, thereby increasing consumer well - being and economic growth. some of the significant measures and reforms aimed at enhancing competition have already come to fruition, and we are already enjoying the results. others are in the process of coming to fruition. and there are additional supporting measures that are now required, such as the development and application of technological and financial instruments, and deepening the capital market. as these are advanced into the future, they will in turn contribute to

the financial system — i have discussed this morning. these developments and innovations involve some risks, but they also may open the door for more efficient financial technologies for both consumers and the various supervisory bodies. as such, financial stability does not necessarily stand in contradistinction to increased competition and increased efficiency. the bank of israel will work to improve the efficiency and assiduously maintain the stability of the capital market and the financial system, and will work to integrate new financial technologies and instruments gradually and under careful control. 4 / 5 bis central bankers'speeches i again congratulate the banking supervision department on this conference, and i welcome the upcoming speakers, who contribute much to the advancements in this area and to the important professional discussion of these issues. thank you. 5 / 5 bis central bankers'speeches