From the Liveblog of
Monday, March 9, 2026
Knesset Economics Committee advances Smotrich’s banking reform
Add ToI as a Preferred Source on GoogleSam Sokol is a former political correspondent at The Times of Israel. He was previously a reporter for the Jerusalem Post, Jewish Telegraphic Agency and Haaretz. He is the author of "Putin’s Hybrid War and the Jews"
The Knesset Economics Committee decides to advance part of the 2026 Arrangements Law, a critical piece of legislation whose passage is needed in order to adopt the 2026 state budget.
Members of the committee vote 3-0, with one abstention, to approve advancing chapter 7 of the bill, which deals with promoting competition in the bank guarantee market, to the final two readings in the Knesset plenum needed for it to pass into law. The Arrangements Law, a key part of the annual budgetary legislative package, determines how funds will be disbursed and must be passed along with the budget to avoid triggering early elections. Lawmakers voted last month to split it into two separate bills for consideration by the Knesset, which subsequently divided the legislation among multiple committees.
If passed into law, the part of the bill approved today would allow additional entities to provide a bank guarantee, thereby increasing competition.
Finance Minister Bezalel Smotrich has made banking reform one of the centerpieces of his 2026 budget proposal, stating in a press conference last December that he would lower the cost of living and take on big banks and monopolies. He warned at the time that unless his proposed reforms are included, “there will be no state budget.”
The committee also votes to advance an amendment to the Natural Gas Sector Law streamlining the process of appointing officials to the Infrastructure Coordination Committee.
The Times of Israel Community.