The Bank of Israel’s new governor says the country’s financial stability should not be taken for granted in a period of “numerous changes in financial markets.”

Amir Yaron took office Monday following several weeks of volatility in Israeli and international markets. At a ceremony in the presence of Israel’s president, prime minister and other dignitaries, Yaron says his immediate challenge is “the normalization of monetary policy.” He says he views the interest rate as “the main and most effective tool” for directing such policy.

The University of Pennsylvania business school professor is an Israeli national who has taught banking and finance at the Wharton School since 2009. He replaces outgoing Bank of Israel Governor Karnit Flug, who recently concluded her five-year term.

(AP)