Securities Authority Chairman Warns: "Replacing Banking Concentration with Institutional Concentration Is Not Competition"
Securities Authority Chairman Spi Zinger warns against the establishment of financial conglomerates, arguing that replacing banking concentration with institutional concentration is not competition. According to him, nearly 60% of institutional assets, totaling over 3 trillion shekels, are managed by just five entities.
Securities Authority Chairman Spi Zinger warns against the establishment of giant financial conglomerates combining banks, insurance companies, and investment firms. In a speech at the annual investment house conference of the Harel Center at Tel Aviv University's Faculty of Management, Zinger said: "Replacing banking concentration with institutional concentration is not competition and not a solution. It merely replaces one problem with another." According to him, nearly 60% of institutional assets, totaling over 3 trillion shekels, are managed by just five entities. Zinger focused on three main risks: conflicts of interest, harm to competition, and harm to consumers. He rejected the idea known as "10 Giants" for establishing large financial groups, and instead proposed strengthening existing competitors in the banking system, including investment houses and payment companies.