Bank of Jerusalem
An Israeli commercial bank headquartered in Jerusalem, with a longstanding specialization in mortgages, real estate finance, retail banking, and related financial services.
Last updated November 4, 2026
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Overview
Bank of Jerusalem, Ltd. is an Israeli commercial bank headquartered in Jerusalem. It began in 1963 as a mortgage institution created to support housing development and economic activity in Jerusalem, later expanding into a broader banking corporation serving retail and commercial customers. The bank’s historical identity is closely associated with residential construction finance, mortgages, and Jerusalem’s urban development, while its later business has included consumer credit, deposits, current accounts, savings, capital-market services, investment management, payment cards, and other banking products. The idea of a Jerusalem-focused bank emerged in the late 1950s among local businesspeople and financial organizations. Although the Bank of Israel was initially reluctant to authorize new banks, approval was granted in 1963 for a mortgage bank. The institution received its first license in December of that year under the name Bank Yerushalayim for Development and Mortgages Ltd. Its original shareholders included Wolfson-Klor Corporation, a government housing and development company, Export Investment Company, Jerusalem Loan and Savings Bank, the Municipality of Jerusalem, and the Workers’ Union. The bank financed residential construction in Jerusalem and contributed to projects including Kiryat Wolfson and the Ramat Sharet neighborhood. Ownership gradually consolidated around the Meir family. In 1989, Moshe Meir assumed control of the bank following a separation of the Meir brothers’ business interests and appointed Zalman Shoval, his son-in-law, as chairman. After Moshe Meir’s death in 1993, control passed to Zalman and Kna Shoval. Export Investment Corp. remains identified as the controlling shareholder, with the company controlled by the Shoval family. The bank became publicly traded on the Tel Aviv Stock Exchange through an initial public offering in 1992. It obtained a financial-institution license in 1997 and a commercial banking license from the Bank of Israel in 1998. The latter marked its transition from a specialized mortgage and financial institution into a commercial bank permitted to serve a wider range of private-sector credit, lending, savings, real-estate, capital-market, and international-banking needs. During the 2000s and 2010s, Bank of Jerusalem broadened its retail proposition. It began issuing credit cards in 2002 in cooperation with Israel’s Credit Cards company and, from 2010, emphasized current accounts, savings accounts, consumer credit, and a controlled-growth strategy. The bank invested in information technology, cyber protection, customer relationship management, call-center capabilities, digital document storage, online services, and branch-based cash and check deposit machines. Its operating model continued to emphasize a relatively cautious risk profile and a mix of specialized lending and diversified customer and revenue sources. The bank also pursued capital-market expansion. In 2013 it acquired General Finance-Assuta Investment Management Company, increasing its presence in investment management and local capital-market activity. That business was subsequently sold to Meitav Dash after approximately four years. In 2017 the bank introduced a prepaid debit-card service aimed particularly at workers who lacked conventional bank accounts and received wages in cash. In 2018 it sought to acquire Municipal Bank, then owned by the Dexia banking group, but the proposal was not selected. Bank of Jerusalem has maintained a primarily domestic footprint, with a network of branches across Israel and a business profile centered on mortgages, real-estate finance, deposits, consumer and commercial credit, and selected investment and payment services. It has also attracted public criticism and international scrutiny because the United Nations included it in a 2020 database of companies associated with business activities connected with Israeli settlements in the West Bank, including East Jerusalem, and…
History
The modern Bank of Jerusalem originated in a late-1950s effort by Jerusalem businesspeople to create a financial institution dedicated to the city’s economic development. A separate Jerusalem Workers’ Loan and Savings Fund also sought banking status. At the time, the Bank of Israel generally opposed the creation of additional banks, but in 1963 it approved the establishment of a mortgage institution in Jerusalem. The bank was founded in 1963 by Mordechai Meir, Charles Clore, Isaac Wolfson, and the Municipality of Jerusalem. In December 1963 it received a license as Bank Yerushalayim for Development and Mortgages Ltd. Mordechai Ish-Shalom, then mayor of Jerusalem, became its first president. The founding shareholder group included Wolfson-Klor Corporation, a government housing and development company, Export Investment Company, Jerusalem Loan and Savings Bank, the municipality, and the Workers’ Union. Isaac Wolfson served as chairman, with Charles Clore and Moshe Meir as deputy chairmen. Initially, the institution concentrated on financing residential construction in Jerusalem. Its lending supported the development of projects and neighborhoods such as Kiryat Wolfson and Ramat Sharet. Over time, ownership became concentrated in the Meir family. The Meir brothers acquired a majority interest through their corporate holdings and associated export businesses. In 1989 they divided their business interests, leaving Moshe Meir in control of the bank. Meir appointed his son-in-law, Zalman Shoval, as chairman. Shoval’s simultaneous political role as a member of the Knesset prompted criticism over a possible conflict of interest. Following Moshe Meir’s death in 1993, control passed to Zalman and Kna Shoval. The bank completed an initial public offering on the Tel Aviv Stock Exchange in 1992. It obtained a financial-institution license in 1997, allowing it to conduct most activities available to a banking corporation while excluding on-demand check payments. In August 1998 it obtained a commercial banking license from the Bank of Israel. This regulatory change broadened its role from a mortgage-oriented institution into a commercial bank active in real estate, capital markets, international banking, commercial credit, private-sector lending, and savings. In 2002, Bank of Jerusalem began issuing credit cards through a partnership with Israel’s Credit Cards company. From 2010 onward, it pursued controlled growth, retaining a strong focus on mortgages and specialized commercial activity while developing consumer credit and retail banking. It expanded current-account and savings products, invested in computer systems and cyber protection, established a call center and digital archive, implemented customer relationship-management tools, upgraded its website, and deployed ATMs capable of cash withdrawals and cash and check deposits. In 2011, after a period of social protest in Israel, the bank changed its deposit-pricing approach. It promoted a model that passed most of the Bank of Israel interest rate through to depositors rather than retaining most of it. Beginning in the second half of 2013, it reduced the benefit and offered depositors approximately half of the central-bank rate under the revised policy described in the reference material. The bank expanded into investment management in 2013 through its purchase of General Finance-Assuta Investment Management Company. This increased its local capital-market activity, but the investment-management business was sold to Meitav Dash after roughly four years. In 2017, Bank of Jerusalem launched a prepaid debit-card service intended to give workers without bank accounts a mechanism for receiving monthly wages electronically. In 2018, it attempted to purchase Municipal Bank from Dexia, but Israel Discount Bank’s competing offer prevailed. Bank of Jerusalem remains an Israeli commercial bank with a branch network across the country and a business mix built around mortgages, real-estate finance, deposits, consumer and commercial lending, payment products, and selected capital-market services. Its public profile has also included controversy. In February 2020, the United Nations published a database of companies associated with business activities connected to Israeli settlements in the West Bank, including East Jerusalem, and the occupied Golan Heights. Bank of Jerusalem was included in that database, leading to criticism and scrutiny regarding settlement-related financial activity.
- 2020
Inclusion in United Nations settlement-related database
[1]The United Nations includes the bank in a database concerning companies associated with settlement-related business activity.
- 2018
Unsuccessful Municipal Bank acquisition bid
[1]The bank’s proposal to acquire Municipal Bank is rejected in favor of a bid from Discount Bank.
- 2017
Prepaid debit-card launch
[1]The bank launches a prepaid card aimed in part at unbanked employees receiving wages in cash.
- 2013
Entry into investment management
[1]The acquisition of General Finance-Assuta Investment Management expands the bank’s capital-market activities.
- 2010
Controlled-growth strategy and technology investment
[1]The bank prioritizes specialized lending, consumer credit, retail banking, operational diversification, and upgrades to digital and cyber infrastructure.
- 2002
Credit-card issuance begins
[1]Bank of Jerusalem begins issuing credit cards through a partnership with Israel’s Credit Cards company.
- 1998
Commercial banking license
[1]The bank receives a commercial banking license and expands beyond its earlier specialized mortgage-institution role.
- 1997
Financial-institution license
[1]The Bank of Israel grants the bank a financial-institution license under the Banking Law.
- 1992
Initial public offering
[1]The bank completes an initial public offering on the Tel Aviv Stock Exchange.
- 1963
Bank is founded as a mortgage institution
[1]Bank Yerushalayim for Development and Mortgages Ltd. receives a license to support housing and economic development in Jerusalem.
Products and positioning
A Jerusalem-rooted Israeli commercial bank combining mortgage and real-estate specialization with retail deposits, consumer credit, commercial banking, payment products, and selected capital-market services.
Mortgage banking · 1963
Residential mortgages
Mortgages are the bank’s defining historical business line. The institution was created to finance housing development in Jerusalem and has retained a strong emphasis on residential lending and specialized mortgage activity as it expanded into commercial banking.
Commercial lending · 1963
Real-estate and construction finance
The bank has financed residential construction and urban-development projects, particularly in Jerusalem. Its real-estate orientation continued after the institution obtained a commercial banking license and broadened its private-sector lending activities.
Retail banking · 2010
Retail deposits and savings
From 2010, the bank placed greater emphasis on retail banking, including current accounts and savings products. Its 2011 deposit-interest policy made the bank notable for temporarily passing a larger share of the central-bank interest rate to depositors.
Lending · 1998
Consumer and commercial loans
Following its transition to commercial banking, Bank of Jerusalem expanded into private-sector lending, consumer credit, and specialized commercial finance while maintaining a stated preference for controlled growth and a relatively low-risk mix of activities.
Payments · 2002
Credit cards
The bank began issuing credit cards to customers in 2002 through a partnership with Israel’s Credit Cards company, adding a payment product to its deposit and lending relationship with retail customers.
Payments and financial inclusion · 2017
Prepaid debit card
Introduced in 2017, the prepaid debit-card service was designed particularly for employees without conventional bank accounts who received their salaries in cash. It provided a card-based channel for receiving and using monthly pay.
Capital markets · 2013
Investment management
Bank of Jerusalem entered investment management through its 2013 acquisition of General Finance-Assuta Investment Management Company. The activity increased its local capital-market presence but was later sold to Meitav Dash.
Controversies
2020
United Nations settlement-related business database
The United Nations included Bank of Jerusalem in a database of companies associated with business activities related to Israeli settlements in the West Bank, including East Jerusalem, and the occupied Golan Heights. The inclusion prompted criticism concerning the bank’s reported or alleged involvement in settlement-linked activity.
Brand decisions
2018
Attempted acquisition of Municipal BankM&ABackground
Municipal Bank was being sold by the Dexia banking group, creating an opportunity to expand Bank of Jerusalem’s banking platform.
Action taken
Bank of Jerusalem submitted an acquisition proposal.
Aftermath
The proposal was rejected in favor of a competing offer from Israel Discount Bank.
- Israel Discount Bank — Discount Bank submitted the competing offer that was selected for Municipal Bank.
2017
Launch of prepaid debit-card serviceProduct launchBackground
Some employees lacked conventional bank accounts and received salaries in cash.
Action taken
The bank introduced a prepaid debit card designed to allow wages to be received and used through a card-based payment channel.
2013
Acquisition of General Finance-Assuta Investment ManagementM&ABackground
The bank sought to increase its presence in Israel’s local capital market and investment-management sector.
Action taken
Bank of Jerusalem acquired General Finance-Assuta Investment Management Company.
Aftermath
The investment-management activity was later sold to Meitav Dash after approximately four years.
2011
Higher pass-through of interest to depositorsPrice changeBackground
Following Israeli social protests and public attention to banking pricing, the bank reviewed its deposit-interest policy.
Action taken
Bank of Jerusalem shifted from retaining most of the Bank of Israel interest rate to passing approximately 80% of it to customers, retaining approximately 20%.
Aftermath
From the second half of 2013, the bank reduced the policy and offered customers approximately half of the Bank of Israel interest rate.
2010
Adoption of a controlled-growth strategyStrategyBackground
The bank sought to develop commercial and retail activity without abandoning its mortgage specialization or low-risk orientation.
Action taken
Management emphasized mortgages, specialized commercial lending, consumer credit, diversified customers and revenue sources, and investment in technology, cyber protection, customer service, and branch infrastructure.
Aftermath
The strategy supported broader retail banking activity, including current accounts and savings, while preserving the bank’s real-estate and mortgage identity.
Sources1 sources
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