Dr. Y. Foerder, chairman of the Bank Leumi, Israel’s oldest and largest banking institution, declared here today that the country’s banking system was basically sound despite the takeovers of three banks recently.
Commenting on the problems of the Feuchtwanger, Ellern and Israel Credit banks, he emphasized that all obligations of the three banks to depositors would be paid in full. He also disclosed that the Bank Leumi would pay 5,000,000 pounds ($1,600,000) for Ellerns and the Credit banks, which have a total of 25 branches in Israel. He said eight of the branches would be operated as Bank Leumi units and the others sold to other Israeli banks seeking new outlets.
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