Archive · 23 Jul 2026
Israeli Banks to End Services to Palestinian Lenders
Israeli banks have decided to stop providing important banking services to Palestinian banks.
These services are very important for the Palestinian economy, as they help with things like importing goods and paying salaries.
The Palestinian banks say this will cause a big economic problem, but the Israeli banks say they are taking this step because of increasing risks.
The Israeli government is trying to find a solution to keep the services going.
If the services stop, it could make the Palestinian economy much worse, and even affect banks in Jordan.
Israeli banks plan to end correspondent banking services to Palestinian lenders by Sept 1 and Oct 1.
These services are crucial for financing imports and facilitating salary transfers for Palestinians.
Israeli banks cite growing legal and financial risks as reasons for ending services.
Palestinian banks warn that ending services will paralyze their financial system and cause an economic crisis.
The Israeli government is discussing with banks to find a solution to continue services safely.
- Who
- Israeli and Palestinian banks, Israeli Finance Ministry, Palestinian Monetary Authority, Central Bank of Jordan.
- What
- Israeli banks plan to end correspondent banking services to Palestinian lenders.
- When
- Deadlines set for Sept 1 and Oct 1.
- Where
- Occupied West Bank, Israel, Jordan.
- Why
- Israeli banks cite growing legal and financial risks, while Palestinian banks warn of an economic crisis.
Israeli Banks
Palestinian Banks
Risk Management
Israeli Banks
Israeli banks cite growing legal and financial risks, including exposure to money laundering or terrorist financing, as reasons to end services.
Palestinian Banks
Palestinian banks argue that ending services will paralyze their financial system and cause an economic crisis.
Economic Impact
Israeli Banks
Israeli banks believe the current arrangement is insufficient to manage risks and want the state to take responsibility.
Palestinian Banks
Palestinian banks warn that cutting banking ties will push transactions into cash, expanding the informal economy and risking the collapse of the Palestinian Authority.
- Key Services
- Financing imports, salary transfers, and processing Palestinian exports.
- Deadlines
- Bank Hapoalim: Oct 1, Discount Bank: Sept 1.
- Annual Transactions
- 51 billion shekels ($16.5 billion).
- Palestinian Exports
- 90% routed through Israel.
- Palestinian Authority Revenue
- Two-thirds from customs revenues collected by Israel.
