Israel appoints new bank governor

Israeli Prime Minister Benjamin Netanyahu and Finance Minister Yair Lapid nominated on Sunday Karnit Flug as the new Bank of Israel governor, according to a statement by the Prime Minister's Office. Flug has been put in place as the central bank's chief since the former Governor Stanley Fischer stepped down on June 30 after eight years in his duty. Netanyahu and Lapid said on Sunday in a joint statement that they "were impressed by Flug's performance in the last months as acting governor of the Bank of Israel. We are confident that she will continue to assist us to advance the Israeli economy to further achievements amidst the global economic turmoil." Flug said in a statement that the Bank of Israel and the Israeli economy "face significant challenges," and that she looks forward "to working in full cooperation with the professional and dedicated staff of the Bank of Israel, as well as with government officials, in order to meet these challenges." Flug, 58, was born in Poland and immigrated to Israel with her parents when she was three. She completed her M.A. at the Hebrew University in 1980 and pursued her Ph.D. in Economics at Columbia University in New York. Flug has served as the Deputy Governor of Israel's central bank and head of the bank's research department.