Hedva Ber, the Bank of Israel’s financial system supervisor, has told reporters that she is supportive of the takeover by Mizrahi Tefahot Bank Ltd, which offers private banking services, of Union Bank of Israel Ltd, which has private banking units in every branch.

Israel's financial sector is the subject of somewhat autocratic regulation and such an endorsement is a signal that the takeover is more than possible. Mizrahi Tefahot has branches all over the world and is a 'full service' bank with corporate and retail banking arms as well as its substantial private banking arm. On its website it makes especially great play of its ability to set up mortgages for HNW clients.

The regulator said that she thought that the putative takeover would strengthen the banking sector, creating a counterweight to the existing two giant fish in the Israeli tank, Bank Leumi and and Bank Hapoalim.