Bank Hapoalim is to close its Manchester office with the loss of its three jobs. It will continue to look after its northern clientele from the UK arm's London premises.

Head of business development Saul Zneimer said that although the measure was cost-cutting, the bank was keen to increase its Manchester business.

"We decided it was far more efficient to work out of the London office. Hopefully we will be able to grow and develop our business there."

He added that "private and corporate banking is very different from high street banking. People don't come in off the street to deal with cheques and other things."

As was currently the case, managers would be available on the end of a phone and would travel to Manchester for client meetings. "It's rationalising the way we can provide a more efficient service."

The London office had increased its staffing by 10 per cent over the past year and, said Mr Zneimer, was picking up business from rival institutions affected by the banking crisis from which Israel had emerged virtually unscathed.