An Angel Named ‘The Bank’: The Bank's Fiduciary Duty as the Basic Theory in Israeli Banking Law

The concept of imposing a fiduciary duty on banks is not originally an Israeli one. The Israeli courts adopted it from English principles of equity. However, from the moment it was introduced into Israeli law, the courts have expanded it far beyond its original equitable counterpart. This process of expansion has been performed in various ways: in terms of the content of the duty; in terms of the scope of the beneficiaries—other than customers—that are entitled to the duty; or in terms of the remedies granted in respect of breach thereof. As a result of this process, the Israeli concept of the banks' fiduciary duty has evolved over the years. From a narrowly applied duty, as in English common law, it became the basic theory in Israeli banking law. The article examines this interesting process from a critical point of view.