Karnit Flug approved as Bank of Israel head

JERUSALEM (JTA) — Israel’s Cabinet approved the appointment of Dr. Karnit Flug as governor of the Bank of Israel.

Her appointment was approved unanimously, several days after the advisory committee on senior appointments and positions chaired by retired Supreme Court judge Jacob Turkel approved the nomination by Israeli Finance Minister Yair Lapid and Israeli Prime Minister Benjamin Netanyahu.

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The deputy governor since July 2011, Flug has been serving as acting governor since Stanley Fischer stepped down on June 30. Fischer recommended Flug to be his replacement.

Her appointment comes after two would-be appointees withdrew their names from the nomination after embarrassing personal information came to light.

Lawrence Summers, a former U.S. Treasury secretary and president of Harvard University, also reportedly turned down the post earlier this month.

Flug had resigned from her position after being passed over to replace Fischer.

“Karnit Flug has the appropriate background and experience and she has fulfilled her position in recent months very well. In addition to the fact that we are successfully navigating the Israeli economy in the face of the global crisis, Israel’s economic leadership must continue to advance growth and employment, increase exports and lower housing prices. We wish Karnit Flug success,” Netanyahu said in a statement following the approval.

Flug received a doctorate in economics from Columbia University in 1985 and worked at the International Monetary Fund before joining the Bank of Israel in 1998.