Palestinian economy braces for shock as Israeli banks halt cross-border ties
Two Israeli banks, Bank Hapoalim and Israel Discount Bank, plan to stop providing correspondent banking services to Palestinian lenders, threatening cross-border payments and imports. The pause—set for Sep 1 and Oct 1 respectively—follows years of pressure on the Palestinian financial sector and has the Palestinian Monetary Authority warning that the economy is weeks from a full crisis, with potential shortages of fuel, medicine and food and wider liquidity and collateral risks. Banks say the move is under review and that responsibility rests with the state, while international reviews have found Palestinian controls generally meet standards.