A big Trade Bank customer warned the Banking Supervision division at Bank of Israel about offenses and improper management at the bank half a year ago.
Documents pertaining to the complaint and the answer from Banking Supervision appear for the first time in the May issue of TheMarker's Hebrew-language magazine.
The customer operated in the capital market and finances, in which he has extensive knowledge, and had accounts worth several million shekels in Trade Bank. The customer wrote several letters of complaint to the Supervision division, warning about Trade Bank operations which he described as "verging on the criminal." The letters warned the Banking Supervision about the recurrence of banks going bankrupt, among other examples, citing the case of Feuchtwanger bank.
"I believe your inspection is needed in order to prevent the recurrence of banks collapsing ¿ causing financial damage to the monies of the bank's customers. In addition, an inspection is needed that would stop operations that are probably in the gray area," the customer wrote.
In reply, the head of public inquiries at the Bank of Israel wrote that in an examination by the Banking Supervision Trade Bank hadn't been found to be operating improperly in fields mentioned in the customer's complains, and accordingly the central bank didn't deem it necessary to intervene.