Israeli banks have reported record profits over the past 22 months, even as households and small businesses struggle with rising borrowing costs and economic pressures caused by war. The gap between the high interest rates banks charge on loans and the low returns they offer on deposits has fueled public frustration, with many feeling that banks are profiting at their expense. Economist Michel Strawczynski has called for a tax surcharge on excess bank profits, arguing that such a measure would help redistribute wealth and fund public goods, as seen in several European countries. While government officials have announced plans to increase competition in the banking sector, Strawczynski remains skeptical that these reforms will be effective, citing the entrenched dominance of the country's five largest banks. He also advocates for allowing non-banking entities to enter the lending market to support small and medium-sized businesses, which are critical for employment but especially vulnerable during times of crisis.