The party is over? The lawsuit that will demand banks return billions to the public

The Central-Lod District Court has approved the management of a class action lawsuit against Israel's four largest banks – Leumi, Mizrahi Tefahot, Discount, and the International Bank – totaling over 15 billion shekels. The lawsuit claims that the banks did not pay customers sufficient interest on credit balances in current accounts, despite the rise in interest rates in the economy. According to the lawsuit's data, the average interest paid by banks on these balances stands at only about 0.1%, while the banks themselves generated much higher returns from the funds. The bank stock index fell by more than 1.5% following the decision. Bank Hapoalim is not included in the current lawsuit, as a separate proceeding is underway against it. Judge Shmuel Bornstein approved the lawsuit on the grounds of unjust enrichment. The banks are expected to appeal to the Supreme Court.