Megan Brooks
Israel's banking sector is highly regulated, which helped the country remain relatively untouched by the global banking collapse a few years ago. While there are no US retail banks in Israel, most US banks maintain correspondent relationships with Israel's leading banks, including Bank Leumi, Bank Hapoalim, and the Israel Discount Bank. Citi, for example, has the largest presence of any foreign financial institution in Israel and offers corporate and investment banking services to leading Israeli corporations and institutions. Additionally, there are ATMs in Israel that accept cards issued by foreign banks, although there may be associated fees.
| Characteristics | Values |
|---|---|
| American banks with branches in Israel | Citibank |
| American banks with ATMs in Israel | Navy Federal Credit Union, Bank of America |
| Israeli banks with subsidiaries in the US | Bank Hapoalim, Bank Leumi, Israel Discount Bank, Mizrahi-Tefahot |
| Israeli banks with US partnerships | Bank Leumi, Bank Hapoalim, Israel Discount Bank, Mizrahi Bank, First International Bank of Israel |
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What You'll Learn
US banks with a presence in Israel
While there are no American banks with physical branches in Israel, most major U.S. banks maintain correspondent relationships with Israel's leading banks, including Bank Leumi, Bank Hapoalim, Israel Discount Bank, Mizrahi Bank, and the First International Bank of Israel. These Israeli banks have their own subsidiaries and branches in major U.S. cities. For example, Bank Hapoalim has a presence in New York and Miami, while Bank Leumi's subsidiary, Leumi USA, operates in New York, Chicago, California, and Florida. Similarly, Israel Discount Bank has a subsidiary in New York, and Mizrahi-Tefahot has a branch in Los Angeles.
Among U.S. financial institutions, Citi boasts the largest presence in Israel. Citi Israel offers corporate and investment banking services to prominent Israeli corporations, institutions, and global corporations operating within the country. Additionally, Citi provides private banking services to high-net-worth individuals residing in Israel. Citi has demonstrated its long-term commitment to Israel through initiatives such as its Technology Innovation Lab in Tel Aviv, which is recognised as one of the top innovation labs worldwide. The lab includes an accelerator programme for Israeli startups specialising in financial technologies (Fintech), fostering innovation and entrepreneurship.
It is worth noting that some U.S. banks, such as Bank of America (BofA), have relationships with various international banks, allowing their customers to avoid ATM fees when travelling abroad, including in Israel. While there may not be American ATMs in Israel, foreign ATM cards are generally accepted in most machines, and American credit cards can be used in most stores. PayPal also offers a convenient alternative for individuals seeking familiar financial services.
For specific information regarding the services provided by U.S. banks in Israel, it is recommended to contact your U.S. banker or the Israeli banks directly. They can provide detailed insights into their respective offerings and any correspondent relationships they maintain.
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Israeli banks with a presence in the US
While there may not be any American banks in Israel, several Israeli banks have a presence in the United States.
Bank Hapoalim, one of Israel's leading banks, has an extensive international presence, including a branch in New York and representative offices in Switzerland and Turkey. The bank provides a wide range of banking and financial services to its customers and focuses on serving Israeli companies operating in the United States, as well as local companies and clients.
Bank Leumi, another leading Israeli bank, has a U.S.-based subsidiary called Leumi USA, with offices in New York, Chicago, California, and Florida.
Israel Discount Bank, often referred to as IDB Bank, is the largest Israeli-owned bank in the U.S. and has a subsidiary in New York.
Mizrahi Tefahot Bank, also known as Mizrahi Bank, has a branch in Los Angeles.
These Israeli banks offer various services to their customers in the United States, including credit, foreign trade, deposits, and dealing-room services. Most U.S. banks also maintain correspondent relationships with these Israeli financial institutions.
It is worth noting that while there may not be American bank branches or ATMs in Israel, American travellers and expatriates can still use their foreign ATM and credit cards in most machines and stores in the country.
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Using US bank cards in Israel
While there are no American banks with branches in Israel, it is possible to use US bank cards in the country. However, there are a few things to keep in mind when doing so.
First, it is important to notify your bank about your travel plans to Israel. This will help prevent fraud alerts and transaction blocks on your account. It is also a good idea to bring only the necessary debit and credit cards with you and to leave the rest at home to reduce the risk of loss or theft.
When using US bank cards in Israel, you may encounter some fees. Most places in Israel have ATMs that accept cards issued outside of the country, but you will typically have to pay a fee for using them. It is also important to use a debit or credit card that waives foreign transaction fees to save money. Additionally, due to the difficulty in sending foreign currencies overseas, it is recommended to keep your foreign currencies on deposit in your home country and send the money to Israel when you need it.
Another thing to keep in mind is that Israel's official currency is the Israeli New Shekel (ILS). While most stores and businesses will accept US Dollars, it is a good idea to exchange some currency before your trip or withdraw shekels from an Israeli ATM using your foreign debit card.
Finally, it is worth noting that there have been some reports of American cards being blocked for point-of-sale purchases in Israel. This has been a widespread issue, and it is unclear who is behind the action to block the cards or why. However, this does not seem to be a widespread issue, and many travellers are able to use their US bank cards for purchases and ATM withdrawals in Israel without any issues.
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US banks with Israeli partnerships
Although there are no American banks in Israel, most major U.S. banks maintain correspondent relationships with Israel's three leading banks: Bank Leumi, Bank Hapoalim, and the Israel Discount Bank. Bank Hapoalim has branches in New York and Miami, while Bank Leumi has a U.S.-based subsidiary, Leumi USA, with offices in New York, Chicago, California, and Florida. The Israel Discount Bank also has a subsidiary in New York, and Mizrahi-Tefahot has a branch in Los Angeles. These Israeli banks with U.S. subsidiaries can provide services to customers in both countries.
For Americans travelling to Israel, it is recommended to notify your bank about your travel plans. While there are no American ATMs in Israel, most ATMs accept cards issued outside of the country, although there may be additional fees. Cards from certain U.S. banks, such as Bank of America (BofA) and Chase, may offer benefits like waiving ATM fees or providing no foreign exchange fees.
In terms of ethical considerations, some banks have faced scrutiny for their involvement in financing Israeli settlements, weapons, and military activities, which contributes to human rights abuses in Palestine. HSBC, for example, has been criticised for its investments in Israeli weapons manufacturers, while Barclays has been questioned for its investments in defence companies supplying Israel. It is important for individuals to research and consider the ethical implications of their banking choices.
On the other hand, IDB Bank, the largest Israeli-owned bank in the U.S., offers a range of personalised services to clients in the U.S. and internationally. With decades of experience, they provide strategies and solutions tailored to the unique needs of their clients, including healthcare banking and commercial real estate.
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Foreign banks in Israel
Israel's banking sector is highly regulated, which helped the country remain relatively untouched by the global banking collapse a few years ago. As of 2022, there are four foreign banks in Israel, supervised by the Banking Supervision Unit of the Bank of Israel. These include Citibank N.A., HSBC, BNP Paribas, Deutsche Bank, Credit Suisse, and the State Bank of India. Barclays was also present in the country but has since ceased operations.
Many Israeli banks have their own subsidiaries in major U.S. cities. For instance, Bank Hapoalim has branches in New York and Miami, while Bank Leumi has a U.S.-based subsidiary, Leumi USA, with offices in New York, Chicago, California, and Florida. Israel Discount Bank also has a subsidiary in New York, and Mizrahi-Tefahot has a branch in Los Angeles.
If you are an American travelling to Israel, it is advisable to inform your bank about your travel plans. Some banks, like Bank of America, have relationships with various international banks and may not charge you ATM fees. Additionally, most places in Israel have ATMs that accept cards issued outside of the country, although you may have to pay a fee.
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Frequently asked questions
There are no American retail banks in Israel. However, Citi boasts the largest presence of any foreign financial institution in Israel and offers corporate and investment banking services.
Yes, you can use your US bank account to withdraw cash from most ATMs in Israel. However, you may be charged a fee for using your card abroad, depending on your bank.
There is an ATM from Navy Federal Credit Union in Tel Aviv. However, to use this ATM, you must have been in or be related to someone who was in the military.
Yes, you can use your American credit card in most stores in Israel.
Yes, you can open an account with an Israeli bank if you are American. Many Israeli banks have their own subsidiaries in major US cities, including Bank Hapoalim, Bank Leumi, Israel Discount Bank, and Mizrahi-Tefahot.
