Professor Leo Leiderman, the chief economist at Israel’s Bank Hapoalim, will become the next governor of the Bank of Israel.

The appointment by Israeli Prime Minister Benjamin Netanyahu and Finance Minister Yair Lapid was revealed today.

Prof Leiderman, who will replace outgoing governor Stanley Fischer, has been the chief economic adviser at Bank Hapoalim for over a decade.

Jacob Frenkel, 70, the chair of JP Morgan Chase, was expected to take up the position but withdrew his candidacy following shoplifting allegations.

Argentina-born Prof Leiderman,61, made aliyah when he was 17.

He has a PhD from Chicago University, is a former managing director of emerging markets at Deutsche Bank and was an executive board member and research department director at the Bank of Israel.