I respectfully submit the 2014 Annual Report to the members of the Banks’ Clearing House pursuant to Part A, Chapter 101, Section E of the Clearing House Rules.
The year 2014 posed significant challenges, including promotion of the Electronic Check Clearing Law, which regulates electronic settlement of checks in the banking system, in lieu of physical presentation of checks; regulation of the processing of checks returned; regulation of the admissibility of a digital image of a check in legal proceedings; authorization for determining rules concerning electronic settlement and retention of physical checks and digital images of checks; the determination that a bank’s liability towards its customers by law is not affected by a change in the settlement method; publication of the Electronic Check Clearing Bill and increased activity of the Check Truncation Subcommittee; review of the recommendations of the inter-ministerial committee headed by the Director General of the Prime Minister’s Office, which are designed to curtail unreported economic activity—the shadow economy—by reducing the use of paper-based means of payment (cash and negotiable checks) and by expanding the use of advanced electronic means of payment; preparations for the inclusion of the Diamond Denominated Accounts Agreement in the Banks’ Clearing House Rules for the purpose of regulating the work processes involving bank branches that provide interbank settlement services for accounts that are designated for diamond transactions, and operation of the check clearing house during Operation Protective Edge, in which the clearing house proved its preparedness for operations during emergency situations.
In 2015 we will continue to collaborate with various agencies to promote the Electronic Check Clearing Law and prepare for its implementation; we will make preparations to promote and implement the Reduction in the Use of Cash Law, especially with all respects related to check clearing; we will complete the integration of the Diamond Denominated Accounts clearing in Banks’ Clearing House Rules; we will promote the planned reform in the procedures for issuance and clearing of corporate securities including automating the process; we will bolster business continuity and clearing houses’ ability to cope with emergency situations, and more.
I am confident that the fruitful cooperation that is characteristic of the members of the Clearing House Committee will continue in 2015 and in forthcoming years. Together, we will be able to implement reforms and fundamental changes that are significant and important for the Israeli economy in general, and for the Banks’ Clearing House in particular.
With thanks and regards,