Israel police question Hapoalim CEO on Dankner loan

Israeli police questioned the chief executive of Bank Hapoalim regarding a loan given to the bank's former chairman Dan Dankner, Israel's second-largest bank said on Tuesday.
The bank in a brief statement to the stock exchange said CEO Zion Kenan was questioned on Monday regarding approval of the loan, which was extended by the bank to Dankner when he was still chairman.
Kenan was questioned under caution for several hours by the national fraud unit "on suspicion of breach of trust", a spokesman for Israel's police said.
He did not know whether Kenan would be questioned again.
The Bank of Israel's banking regulator said it was aware of the police questioning and was following developments.
"Bank Hapoalim has an extensive and professional management that guarantees its ability to continue to operate without interruption despite this event," the regulator said in a statement.
The fraud unit in March questioned Dankner about his role as director and chairman of Hapoalim from 2005 through 2009.
The police said in a statement at the time there were "apparent suspicions that Mr. Dankner committed felonies related to ethical breaches".
In April Dankner was arrested in connection with an alleged bribery scandal in a Jerusalem luxury housing project.
Dankner stepped down as chairman of Hapoalim in 2009 after a two-month battle with banking regulators who demanded his resignation. At the time, the Bank of Israel said it was unhappy with disagreements between Dankner and former chief executive Zvi Ziv that led to Ziv's resignation. Ziv was replaced by Kenan.