Israeli banks set to sever financial links with Palestinian banks, sparking payment fears

Israeli banks set to sever financial links with Palestinian banks, sparking payment fears Submitted by Fayha Shalash on Fri, 07/24/2026 - 09:54 Two Israeli banks cutting ties with Palestinian financial system could disrupt trade, salary payments, imports and financial transfers across occupied territories An Israeli man stands beside an automated teller machine at a Bank Hapoalim branch in Jerusalem, 1 May 2020 (Menahem Kahana/AFP) Off Israeli banks Hapoalim and Discount have informed Palestinian banks of their intention to halt vital correspondent banking services within weeks, news agency AFP reported. Five Palestinian banks that rely on Bank Hapoalim for correspondent banking services will lose access to these services on 13 August, while banks that conduct transactions through Discount Bank face a similar fate on 1 September, the report quoted Palestinian banking officials as saying. The Israeli finance ministry said that the decision was made due to "increasing public risks and concerns about private lawsuits that could target Israeli banking institutions".