At a time when Israeli financial stocks keep falling and there doesn’t seem to be much interest in the sector, $17 billion hedge fund York Capital is looking to increase its stake in Bank Hapoalim.

According to a report in Globes: ” York Capital wants to expand its activity in Israel and is examining further investments in financial companies.”The sources said that York Capital’s request to the Bank of Israel was with the knowledge and consent of Bank Hapoalim controlling shareholder Shari Arison Dankner. A top banker told “Globes”, “York Capitals’ wish to buy Bank Hapoalim shares especially now is a vote of confidence in the bank and in Israel’s financial system.”

York already owns Psagot investment house which it bought from Bank Leumi. Their move to buy a 9.9% interest in Bank Hapoalim, truly signals York’s commitment to the Israeli marketplace and that they view the country as having