David Zaken, the deputy supervisor of banks and a 20-year veteran of the banking supervision department, was appointed on November 29th to replace the outgoing supervisor, Roni Hizkiyahu, with effect from January 1st. Mr Hizkiyahu notified Mr Fischer some months ago of his intention to step down, after a relatively short, but highly intensive, four-year term. Mr Hizkiyahu had been head of credit at Israel Discount Bank before being selected, in the wake of Mr Fischer's unprecedented firing of the serving supervisor, Yoav Lehman, in mid-2006. Hardly known outside of banking circles, the unassuming Mr Hizkiyahu had seemed an unlikely choice, but he proved to be the perfect foil to Mr Fischer in achieving his goal of fundamental revamping both the attitudes and modus operandi of the banking supervision department.

The relatively smooth manner in which Israeli banks navigated the global financial crisis of 2008, as well as the quiet determination the Bank of Israel (the central bank) displayed in forcing the resignation of Bank Hapoalim's then-chairman in April-May 2009, were the most obvious achievements of the Fischer-Hizkiyahu team. Behind the scenes, Mr Hizkiyahu's ability to groom potential successors allowed Mr Fischer and the search committee he established, headed by his deputy, Zvi Eckstein, to choose an "inside" candidate and thereby give preference to continuity and institutional stability.

Mr Zaken has been a key figure in preparing the banking system for the adoption of the Basel II regulatory regime. With further regulatory reforms-including Basel III-looming on both the global and domestic fronts, his knowledge and expertise, as well as the respect accorded him by both colleagues and bankers, will be essential in one of the most critical posts in the financial system.