The Bank of Israel is Israel’s central bank, established in 1954 and headquartered in Jerusalem.
The institution was created by the Bank of Israel Law, which was enacted in August 1954. It took over central-bank responsibilities that had initially been handled through the government and other financial arrangements after the establishment of the state.
The Bank of Israel issues the Israeli new shekel, conducts monetary policy, manages foreign-exchange reserves, and promotes financial stability. Its independence and responsibilities have developed through later legal reforms, including the 2010 Bank of Israel Law. The bank is distinct from Bank Leumi, a commercial bank whose name can cause confusion.