Moshe Sanbar

Moshe Sanbar
Born	Template:Birth date Kecskemét, Hungary
Died	October 1, 2012(2012-10-01) (aged 86)
Occupation(s)	Economist, public leader
Known for	Governor of the Bank of Israel (1971–1976), chairman of Bank Leumi (1988–1995)

Moshe Sanbar (; March 29, 1926 – October 1, 2012) was a prominent Israeli economist and public leader. He held the position of Governor of the Bank of Israel from 1971 to 1976 and later served as chairman of Bank Leumi between 1988 and 1995.

Originally from Hungary, Sanbar endured the Second World War as a detainee at Dachau Concentration Camp. Upon relocating to Israel, he embarked on a career as an economic analyst and progressed through various senior roles within the Ministry of Finance. His appointments included head of research (1958–60), deputy director of the State Income Directorate (1960–63), and subsequently head of the Budget Directorate along with serving as economic advisor to the minister (1963–68). He provided consultancy to finance ministers Levi Eshkol and Pinhas Sapir, additionally representing Sapir during his tenure as Minister of Trade and Industry (1970–71). Between 1977 and 1981, Sanbar chaired the Sanbar Commission, which examined the interactions between local governments and central authorities.

After moving away from governmental and academic spheres, Sanbar dedicated himself to executive roles in private financial and industrial enterprises while maintaining influential public positions in education, cultural institutions, sports, and scientific communities. His contributions were particularly notable within Habima Theatre, the College of Management, and as head of Israel’s chapter of the ICC. In the late 1980s, he established Israel’s principal organization representing Holocaust survivors, uniting more than 50 affiliated groups. Furthermore, he held key roles as world treasurer and executive chairman of the Claims Conference, engaging actively in global commissions on property restitution and advocating for survivors’ entitlements.

Early life

Born as Gusztáv Sandberg on March 29, 1926, in Kecskemét, Hungary, Sanbar was the son of Salomon Sandberg and Miriam (Margit) née Klausner, both tragically lost during the Holocaust in Hungary in 1944. His father was responsible for managing a family enterprise specializing in agricultural products and poultry import-export. Arrested twice by Nazi forces—in 1941 and again in 1944—his father was deported to labor camps; his mother perished at Auschwitz.

During his youth, Sanbar distinguished himself in multiple sports including table tennis, fencing, wrestling, and football—earning recognition as a wrestling champion in Southern Hungary’s high school circuit. When Jewish athletes were expelled from teams under Nazi rule, he responded by establishing a national soccer league for Jewish players. Prior to the war’s outbreak, he played as a right midfielder within Southern Hungary’s youth football league.

In June 1944, Sanbar was drafted into Hungarian Army labor units before being transferred to Dachau concentration camp in Germany. He was freed by Allied troops on May 2, 1945 near Seeshaupt while being transported toward an extermination facility. During his recovery period, he contracted typhus. His wartime ordeal is chronicled in his memoir My Longest Year, recognized as one of Israel’s earliest personal accounts from Holocaust survivors.

Before World War II began, Sanbar engaged with economic thought through participation in a social club initiated by Erik Molnár. After recuperating from illness, he pursued economics studies at the Budapest University of Technology and Economics. During this time, he became active in the HaOved HaTzioni movement and took leadership roles in immigrant training initiatives within Hungary, also serving on the executive committee of the Hungarian Zionist organization.

At age seventeen, he won a literary competition for a play centered on the Land of Israel. In early 1948, Sanbar joined the Hagana and led a group of sixty emigrants to Mandatory Palestine via clandestine immigration (Aliyah Bet). Upon arrival in May 1948, he was conscripted into the Israel Defense Forces and sustained serious injuries during the Battle of Latrun amid the 1948 Arab–Israeli War. He subsequently earned a master's degree in economics, statistics, and sociology from the Hebrew University of Jerusalem in 1953.

Research and academia

Sanbar commenced his professional journey in 1951 as a researcher and statistician at the Institute for Social Applied Research, working under the guidance of Louis Guttman, and advanced to deputy director by 1956. Between 1957 and 1962, he served on the faculty at the Hebrew University of Jerusalem. He was among the early innovators in the field of consumer economics and income distribution studies, conducting one of the earliest extensive public surveys globally. The insights he gained provided foundational material for publications in The Economic Quarterly.

Ministry of Finance

Sanbar entered the Ministry of Finance in 1958 as the inaugural director of the research division within the Income Directorate (1958–59), subsequently advancing to professional deputy director from 1960 to 1963. He chaired government committees focused on taxation and played a key role during the 1962 devaluation, overseeing national income distribution initiatives between 1962 and 1966. Additionally, he represented the government on various boards such as Mekorot, led the finance committee for El Al, and in 1967 established the Israel Sports Betting Board, which managed the national football pool.

With appointments of Levi Eshkol and Pinhas Sapir, Sanbar assumed the roles of chief financial advisor and Director of Budgeting. He pioneered four-year budget frameworks aligned with strategic economic growth objectives and authored the United Nations manual titled “Budget and Planning.” His approach to budgeting incorporated yearly projections analyzing impacts across different income brackets. He chaired commissions aimed at enhancing public sector efficiency and spearheaded governmental efforts to automate civil service operations through computerization. Sanbar played a pivotal role in formulating policies addressing the 1966 recession.

He fostered industrial and scientific progress by substituting government loans with research grants and founding scientific centers adjacent to universities. Furthermore, he advanced export policies emphasizing knowledge-based services.

Throughout the 1960s, Sanbar coordinated government wage strategies across various sectors amid recurrent labor strikes, acting as a principal arbitrator alongside Oded Messer. After the Six-Day War, upon Prime Minister Eshkol’s request, he supervised economic policy concerning Palestinians in the West Bank and Gaza Strip, while also managing development initiatives in unified Jerusalem, including restoration work in the Jewish Quarter and infrastructure enhancements surrounding the Old City.

Sanbar stepped down from his budgeting position in April 1968, followed by his resignation as chief financial advisor three months later. Subsequent to the World Economic Conference held in Jerusalem, he was appointed vice chairperson of the newly established Israel Corporation, where he directed investment strategies responding to foreign investor interests under Prime Minister Eshkol’s guidance.

Chairman of the Industrial Development Bank

In 1968, Minister of Finance Ze'ev Sherf designated Sanbar as deputy chairman of the Industrial Development Bank. Following the death of chairman Yeshayahu Foerder in 1970, Sanbar was promoted to chairperson. By February 1971, he also took leadership of the government company responsible for industrial financing, with plans to integrate it into the bank's investment arm. Between 1968 and 1971, under his stewardship, development loans expanded substantially, with the bank’s business volume increasing from 330 million Israeli pound in 1968 to more than 600 million by 1971.

Acting Minister of Trade and Industry

Between 1970 and 1971, Sanbar assumed the role of acting minister of commerce and industry within Israel's fifteenth government led by Golda Meir, stepping in for Minister Sapir, who simultaneously managed the Finance portfolio. Serving as Sapir’s “special advisor,” Sanbar exercised full ministerial powers. He spearheaded government initiatives aimed at controlling inflation, which was driven by security challenges and heightened taxation. A key achievement was negotiating the "package deal" with the Histadrut, which balanced tax increases with wage rises and ensured that industries absorbed elevated production expenses.

During his tenure, the ministry prioritized legislation focused on consumer protection and curbing unfair competitive practices. Sanbar also championed the development of the Merkava battle tank, recognizing its industrial advantages.

At the same time, Sanbar acted as economic advisor to Pinhas Sapir at the Ministry of Finance and chaired the Economic Advisory Council. He played a significant role in orchestrating the 1971 currency devaluation.

Governor of the Bank of Israel

From 1971 until 1976, Sanbar held the position of Governor of the Bank of Israel amid a challenging era marked by fiscal pressures from the Yom Kippur War, the 1970s energy crisis, and escalating defense expenditures linked to a renewed arms race in the Middle East. His implementation of an "emergency credit" strategy during wartime was crucial for stabilizing financial markets.

Sanbar promoted eliminating the divide between subsidized credit and direct credit to address concerns raised by leaders in industry and agriculture. Liquidity rates offered to expatriates were sharply reduced from 90% to 10%, enhancing the local banking system’s engagement with Jewish communities worldwide. The central bank also took over oversight of the foreign exchange market, transitioning Israeli pound devaluation from being pegged solely to the US dollar to a currency basket approach. During his governorship, the First International Bank of Israel was established, while both Agudat Yisrael Bank and Israel-British Bank were liquidated, prompting partial amendments to Israeli banking legislation in 1981.

On the international stage, Sanbar acted as Israel’s representative at institutions such as the International Monetary Fund, World Bank, and other global financial organizations. He introduced two significant proposals known collectively as the “Sanbar Proposals”:

1. The creation of an institution to guarantee export capital among developing nations, which was subsequently adopted by Latin American countries.
2. A plan advocating for gradual sales and demonetization of monetary gold under IMF oversight.

Sanbar modernized operations at the Bank of Israel by instituting a public complaints office, consolidating foreign exchange staff into a single department, establishing centralized legal counsel, and creating an autonomous unit dedicated to credit regulation.

The collapse of Israel-British Bank marked the inaugural use of central bank authority to appoint a director and secure client deposits under legislation enacted in 1969. Prompt intervention on behalf of depositors represented a milestone in regulatory enforcement, despite resolution processes extending over three decades. A 1975 inquiry led by Meir Shamgar concluded that Sanbar’s management was appropriate.

He advocated for clear separation between duties as central bank governor and government economic advisor. Nevertheless, under his guidance, the bank’s research division became a vital contributor to policy formulation and econometric analysis.

In early 1976, Sanbar announced he would not pursue a second term as governor. Although there was speculation about him assuming leadership at Hadera Paper, he ultimately declined.

Sanbar’s signature is featured on the fourth series of the Israeli Pound.

Sanbar Commission

Between 1977 and 1981, Sanbar voluntarily led a government commission focused on municipal issues, established at the behest of Prime Minister Yitzhak Rabin. He oversaw two of the commission's five subcommittees: one addressing the financing of local governments and another analyzing the interactions between central and local authorities regarding public services. The commission operated through approximately 120 working groups and issued twenty interim reports.

Following the initial report, legislative measures were enacted in 1978 to apply select recommendations. The commission's conclusive report, submitted to Prime Minister Menachem Begin in June 1981, recommended enhancing local governments' independent revenue streams, establishing criteria for state funding, and defining standard services to be managed by local authorities or supported by the national budget.

Although both the Knesset and the Federation of Local Authorities in Israel endorsed these proposals, Finance Minister Yoram Aridor's resistance delayed their full implementation until a subsequent administration adopted the report comprehensively in 1984.

Private sector

Starting in 1977, Sanbar assumed multiple leadership roles across industrial and financial enterprises. His chairmanships included Electrochemical Industries (1977–82), Atzmaut Bank for Mortgages and Development, Le Nacional Insurance (1985–91), Zelon Ltd. (1981–90), M.G. Rubber Industries (1984–88), and Solel Boneh (1986). He joined the executive committee of the Manufacturers Association of Israel in 1978 and advanced to its presidium by 1981.

Throughout the 1980s, Sanbar was frequently considered for the finance minister position and served as an advisor to Prime Minister and Finance Minister Shimon Peres, playing a pivotal role in shaping the 1984 “package deal.” In 1985, he contributed significantly to the formulation of the 1985 Israel Economic Stabilization Plan and was appointed to a public committee by Finance Minister Yitzhak Moda'i tasked with prioritizing government expenditures and budget allocation.

Chairman of Bank Leumi

From 1988 until 1995, Sanbar chaired the board of Bank Leumi and its subsidiaries during a period characterized by prior leadership turnover and substantial financial difficulties, including liabilities linked to the Kibbutz Movement and Koor Industries. He implemented a new governance framework emphasizing expert subcommittees for decision-making and adopted a business approach that restricted financial assistance to companies demonstrating active efforts toward financial improvement. Under his stewardship, Bank Leumi achieved stabilization, reorganization, and growth in both organizational structure and profitability.

Sanbar was a strong advocate for the bank’s venture capital activities, spearheading initiatives such as the establishment of the “Teuza” fund and the Israel Growth Fund aimed at investment promotion. He also chaired Bank Leumi’s subsidiaries based in London and Switzerland, as well as overseeing the development firm Africa-Israel Group. Following the dissolution of the Soviet Union, he directed expansion into European markets by reopening branches in Germany and launching a credit subsidiary in Budapest. Sanbar engaged in initiatives to promote economic cooperation between Israel and the former Soviet states and collaborated with Arab Israel Bank and European financial institutions on creating the First International Palestinian Bank; however, geopolitical developments ultimately halted this project.

Under Sanbar’s leadership, Bank Leumi embraced corporate social responsibility by financing cultural heritage restoration projects such as Bialik House and supporting community advancement through dedicated funds aimed at Arab Christian entrepreneurs. Additionally, he served on an environmental NGO’s board that advocated for corporate environmental accountability.

Beyond his role at Bank Leumi, Sanbar held prominent positions including chairman of the executive committee of the Association of Banks in Israel and membership on the Advisory Council of the Bank of Israel beginning in 1989. He resigned from Bank Leumi’s board in 1995 but continued chairing its Swiss investment subsidiary until 1996. Subsequently, he joined the board of Fairchild Corporation and provided financial consultancy services.

ICC Presidency in Israel

From 1992 until 2003, Sanbar held the position of president of the International Chamber of Commerce in Israel. During this period, he was elected twice (1997-1999 and 2002-2003) to serve on the ICC's international executive board. Notably, in 1996, he became the first Israeli to join this global governing body.

Within Israel, Sanbar was actively involved with the Tel Aviv Chamber of Commerce, earning honorary board membership in 1987. Additionally, he was a member of the presidium for the Chambers of Commerce Association in Israel up until 2003.

Community and Public Engagement

Sanbar made substantial contributions to cultural, educational, and social institutions, frequently donating his arbitration fees to support public initiatives.

In his role as an arbitrator, he resolved major disputes such as those concerning merchant navy wages in 1978 and conflicts relating to commercial broadcasting laws in 1986. He also chaired several public committees, including those focused on the 1986 restructuring of Clalit Health Services and the 1988 reforms of both the World Zionist Organization and the Jewish Agency.

Moreover, Sanbar took part in drafting a proposed Constitution of Israel that was introduced in 1988.

His leadership positions within various non-governmental organizations are summarized as follows:

Year	Role	Details
~1966-71	Founding Chairman, Fund for Excelling Athletes
1967–68	Chairman, Israel Sports Betting Board
1969–96	Chairman, Economic Development and Refugee Rehabilitation Trust
1969–81	Chairman, Habima Theatre
1972–95	Chairman, Board of Trustees, College of Management	Also served as Executive Chairman (1983–89)
Since 1974	Honorary President, World Federation of Hungarian Speaking Jews
1979–82	Chairman, United Jewish Appeal	Advocated for development initiatives in the Galilee region
1982–2012	Founding President, Janco-Dada Museum
1983–84	Founding Chairman, Association for Good Governance
1983–?	Chairman, Bimama Children's Theatre
1984–89	Chairman/President, Association for Israel-Hungary Relations
1985–95	Chairman, Israel-Belgium Cultural Foundation	Founding member since 1979
1987–99	President, Inbar Organization for Rheumatic Patients	Previously founding chairman (1985–87)
1987–2003	Founding chairman, Umbrella Organization for Holocaust Survivors in Israel	Later honorary president (2003–11), reappointed chairman (2011–12)
1989–?	Chairman, Association of Banks in Israel
1990s	Chairman, Board of Trustees, Massuah Institute for Holocaust Studies
1995–2012	Chairman, Rosenrauch Foundation
2003–12	Chairman, Public Council of the Yiddishpiel Theatre

Efforts Toward Israeli-Palestinian Conflict Resolution

In 1969, Prime Minister Golda Meir commissioned Sanbar to develop an alternative approach to the United Nations' plan regarding Palestinian refugee resettlement and compensation for lost properties. He formulated an economic-political strategy that was initially set aside due to negotiations led by UN Special Representative Gunnar Jarring, but it resurfaced three years later. When Meir became governor of the central bank, she requested Sanbar to revise this proposal for presentation before the World Bank and during discussions with Robert McNamara. He also evaluated proposals related to the Mediterranean–Dead Sea Canal. Subsequently, Sanbar submitted an economic framework addressing Palestinian refugees alongside neighboring Arab states to Prime Minister Rabin; however, it did not advance to formal deliberation.

That same year, Sanbar co-established the “'Rehovot Group’,” a non-governmental think tank headed by Amos de-Shalit that concentrated on Israel’s economic and social policy with consideration for Arab populations.

Alongside Shimon Peres and others, Sanbar founded the 'Economic Development and Refugee Rehabilitation Trust’, serving as its chairperson. Continuing this role while Bank of Israel governor, he directed the Trust’s humanitarian projects within the West Bank and Gaza Strip. In its inaugural year alone, the Trust allocated two million Israeli pounds toward water infrastructure, healthcare services, and vocational training programs. Over a four-year period exceeding three million pounds were invested in refurbishing refugee camps at Gaza locations such as Nuseirat Camp, Bureij, and Al-Shati; upgrading water systems at Nur Shams, Jenin, and Jalazone; enhancing electrical infrastructure in Jenin; creating sports facilities in Gaza City; renovating Al-Shifa Hospital; establishing nine medical clinics across the West Bank; and developing vocational centers in Gaza and Rafiah.

Operating for more than twenty years, the Rehabilitation Trust eventually shifted its focus toward humanitarian assistance near the Israel-Lebanon border' while supporting policies linked to the Good Fence’.

Cultural institutions

Leadership at Habima National Theatre

Between 1969 and 1981, Sanbar presided over the board of trustees for Habima Theatre during its evolution from a collective entity to Israel’s official national theatre. His tenure was marked by the adoption of a refreshed artistic direction that corresponded with the theatre’s elevated national role. Additionally, two pivotal policy documents were introduced, clearly outlining the theatre’s objectives and governance framework. These changes broadened audience participation, launched the inaugural subscription system, incorporated fringe theatre elements, and synchronized programming with the Ministry of Education’s objectives.

Establishment of the Janco-Dada Museum

Sanbar spearheaded the initiative in 1979 to create a museum dedicated to the artist Marcel Janco within the Ein Hod artists’ village. Following successful fundraising efforts completed in 1981, the museum officially opened its doors in 1983. He held the position of honorary president for thirty years, maintaining this role until his passing in 2012.

Advancement of sports and athlete support

Appointed as the first chairman of the Israel Sports Betting Board in 1967, Sanbar managed the national football lottery. Simultaneously, he led the Fund for Excelling Athletes, which by 1970 had allocated approximately 500,000 Israeli pounds to support competitors across seventeen different sports disciplines. His efforts in fundraising facilitated significant acquisitions, including six rowing boats for Israeli athletes competing at the 1972 Summer Olympics. Sanbar maintained leadership of this fund until he assumed the role of Governor at the Bank of Israel.

Academic contributions and founding of College of Management

Sanbar chaired the board of trustees at The College of Management Academic Studies from 1972 until 1995. In 1978, under his guidance, the institution received formal accreditation as a higher education establishment from the Council for Higher Education in Israel, an achievement recognized by Minister of Education Zevulun Hammer. Furthermore, he led the college’s executive board between 1983 and 1989.

His academic involvement extended to executive positions at Tel Aviv University and the Technion, along with board memberships at institutions such as Hebrew University and Bezalel Academy of Arts and Design. He taught statistics at Hebrew University from 1957 to 1961, delivered lectures on economic research and policy at the Higher School for Law and Economics in 1959, and served as a visiting economics professor at Tel Aviv University during 1977–79. In addition, Sanbar co-established the Foerder Institute of Economic Research at Tel Aviv University in 1971.

From 1974 through 1979, he held the presidency of the Association of Graduates in Social Sciences and Humanities.

Support for Holocaust Survivors and Commemoration Efforts

Beginning in 1987, Sanbar became deeply involved with organizations dedicated to aiding Holocaust survivors. He was a founding member and served as chairman of the Umbrella Organization for Holocaust Survivors in Israel from 1987 until 2003. Following this period, he held the position of honorary president until 2011, when he reassumed the chairmanship after the death of his successor.

During his tenure, Sanbar secured official representation for the organization within the Claims Conference, where he held roles as international treasurer between 1992 and 2001, and later as executive chairman from 2002 to 2006. He played a pivotal role in reopening reparations claims to encompass additional groups of victims, such as survivors from Eastern Europe and those subjected to forced labor camps. Sanbar was instrumental in achieving a Claims Conference policy that directed 80% of resources toward survivors most in need, with the remaining 20% allocated to initiatives focused on education, research, and remembrance. Furthermore, he negotiated the creation of the Foundation for the Welfare of Holocaust Victims in Israel.

Sanbar also co-established the World Jewish Restitution Organization and authored the book “Holocaust Gold From The Victims to Switzerland: The Paths of the Nazi Plunder” published in 2000. His involvement extended to several international restitution bodies, including membership on the Swiss National Committee on Needy Holocaust Survivors, participation in the International Commission on Holocaust Era Insurance Claims from 1998 to 2007, and engagement with Hungary’s Inter-ministerial Committee for Restitution. In recognition of his contributions, he was appointed an honorary member of the European Shoah Legacy Institute in 2011—a distinction shared by notable figures such as Czech President Václav Havel and Nobel laureate Elie Wiesel.

Within Israel, Sanbar chaired the board of the Massuah Institute for Holocaust Studies and was a member of Yad Vashem’s council. He delivered the keynote address at Yad Vashem’s Yom HaShoah ceremony commemorating Israel’s 50th anniversary in 1998. In 2005, he assumed leadership of a national council established to emphasize the role of Holocaust survivors in Israel’s growth and development.

Final Years and Passing

In his later life, Sanbar concentrated on leadership roles within various committees and organizations dedicated to supporting Holocaust survivors both domestically and internationally. Between 2002 and 2008, he chaired Neuromuscular Electrical Stimulation Systems Ltd. Additionally, in 2008 he served as an advisor to Minister Rafi Eitan on an urgent strategy designed to protect Israeli pension fund assets.

During the 2009 Israeli elections, Sanbar appeared as the last candidate on the list for the Gil Party. The following year saw the publication of his biography in Hebrew titled Signed on the Bill: An Economist in a Political World.

At the time of his passing in 2012, Sanbar was chairman of the Rosenrauch Foundation and served on the public council of Yiddishpiel Theatre. He also held honorary presidencies at ICC Israel, Janco-Dada Museum, and continued leading the Umbrella Organization for Holocaust Survivors in Israel.

Sanbar died on October 1, 2012, in Tel Aviv and was interred at Kiryat Shaul Cemetery. The memorial service featured speakers including Rabbi Israel Meir Lau, Karnit Flug, Julius Berman, Colette Avital, and Rafi Eitan.

Awards and Distinctions

Sanbar’s extensive public service and economic achievements earned him numerous accolades: among them were the Herzl Prize (1973), honorary citizenships granted by Pueblo, Colorado (1978) and Metula (1973), recognition from Israel’s Ministry of Interior for municipal contributions (1986), B'nai B'rith's Special Humanitarian Award (1995), an Honorary Doctorate from Bar-Ilan University (2000), a lifetime achievement award from the Israeli Chamber of Commerce (2004), and the Light Award from the Fund for the Welfare of Holocaust Survivors (2012). Additionally, he was honored as a distinguished citizen of Tel Aviv in 2000.

In 2004, Hungary bestowed upon him its highest civilian honor—the Order of Merit of the Republic of Hungary.

To commemorate his legacy, Israel’s College of Management inaugurated the Moshe Sanbar Institute for Applied Economic Research in 2003. This dedication was accompanied by a publication celebrating fifty years of Israel’s economic development.

After his death, a building at the Dorot Medical Center was named in his honor by the Claims Conference.

Sanbar’s personal archives are maintained at both the Israel State Archives and Massuah Institute for Holocaust Studies.

Published works

Sanbar produced a substantial body of research papers and articles focusing on topics such as economic policy, taxation, income distribution, and monetary matters. Additionally, he authored and edited multiple books in English addressing economic history and policy-related subjects:

• My Longest Year: In the Hungarian Labour Service and in the Nazi Camps (1968, Yad Vashem)
• Economic and Social Policy in Israel (1989, UPA)
• Holocaust Gold From The Victims to Switzerland: The Paths of the Nazi Plunder (2000, Moreshet)

External links

• Moshe Sanbar Discusses the Legacy of Holocaust Survivors
• Obituary: Former Bank of Israel Governor Moshe Sanbar, Haaretz, October 2, 2012.