Abstract
The recent government administrations and the Bank of Israel (BOI) are determined to obtain and preserve a stable currency and macroeconomic environment, in addition to deepening the financial sector. The BOI plays a key role in liquidity management and absorbing liquidity shocks owing to the uneven development of financial markets. The paper summarizes assessment of Israel's observance of financial sector supervision standards and codes. Israel has relatively well-developed, capable, and transparent financial sector supervision and monetary policy formulation. Insurance and pension reform should be completed.
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