First International Bank of Israel (FIBI) is the smallest of the five large banks in Israel. Together they create an oligopoly with oligopolistic economics. FIBI is the highest quality of the five banks as evidenced by its economic castle, moat, and management.
For decades, the banking oligopoly in Israel has been fat and happy. Within the last decade, the entire industry has undergone an efficiency initiative. This is primarily due to government initiatives to make the banking industry in Israel highly competitive. FIBI has the largest moats because of its niche brands and balance sheet. Furthermore, FIBI has the best ROE because of the managements focus on quality instead of size. This is likely to continue because of a long time, long term, controlling shareholders.
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