Excerpt from Term Paper:

...... The end-product of this labor in both nations was a financial
structure in which banks, and by extension the government at large,
controlled the flow of capital. On one hand, banks in Israel were
autonomous only to the extent that the central bank's severe regulations
and restrictions allowed. The government used the banking system as a means
of regulating its own financial initiatives. Private domestic capital, of
which includes bonds and savings accounts, had restrictions enforced by the
MOF so that the government could quickly utilize these funds should the
state's budget deficit spiral out of control. The Bank of Israel, Israel's
central bank, also set high liquidity ratios to limit the amount of credit
banks could extend to keep monetary expansion at a safe pace. Banks were
also the major beneficiaries in the Israeli stock boom of 1962-1964, due to
their ownership of 22 of the 34 companies listed on the exchange. This
success was due to the fact that the central bank cherry picked which bank-
funded projects best coalesced with the government's most valued sectors of
development. This subject will be expanded upon further two paragraphs
down
On the other hand, the banking system in South

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