Israel may have to change the law governing the central bank to allow Jacob Frenkel to serve a third term as its chief, an Israeli official said today.
According to the Bank of Israel Law, approved in 2010, governors may serve a maximum of two terms. Frenkel, who was nominated by Prime Minister Benjamin Netanyahu, served as governor from 1991 to 2000.
It appears that it will be necessary to change the law for Frenkel and the government is aware of that, the official said, speaking anonymously because of the sensitivity of the matter.
Frenkel, 70, chairman of JPMorgan Chase (JPM:US) International, was nominated yesterday by Prime Minister Benjamin Netanyahu. The post of governor unexpectedly opened in January when Stanley Fischer, 69, announced he would leave at the end of June, midway through his second five-year term.
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