Story perspectives

Bank Hapoalim, Discount to end Palestinian services by Oct

7/23/2026

Summary

Story summary

Bank Hapoalim and Discount Bank will end correspondent services to Palestinian banks, with Discount cutting off on September 1 and Hapoalim on October 1.
The banks handle about NIS 51 billion ($16.5 billion) annually, covering roughly 90 % of Palestinian trade.
Governor Yahya Shunnar warned that the terminations could halt trade, utilities and wage payments for millions of Palestinians.
The U.S. State Department warned that destabilizing West Bank banking could increase cash use and breach anti-money-laundering standards.

History

Historical Context

The 1994 Oslo II Accord and its Paris Protocol gave the new Palestinian Authority limited fiscal autonomy while Israel kept control of foreign-currency banking and customs. The United States, EU and World Bank pledged $2.5 billion, 90 % routed through Israeli banks. Today, Bank Hapoalim and Discount Bank’s September 1 and October 1 terminations of NIS 51 billion services revive those restrictions, threatening West Bank trade.

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Story summary

Bank Hapoalim and Discount Bank will end correspondent services to Palestinian banks, with Discount cutting off on September 1 and Hapoalim on October 1.
The banks handle about NIS 51 billion ($16.5 billion) annually, covering roughly 90 % of Palestinian trade.
Governor Yahya Shunnar warned that the terminations could halt trade, utilities and wage payments for millions of Palestinians.
The U.S. State Department warned that destabilizing West Bank banking could increase cash use and breach anti-money-laundering standards.

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