US Urges Israel to Maintain Banking Ties with Palestinian Banks to Prevent Crisis

Deputy Treasury Secretary Wally Adeyemo warns that severing banking relationships could destabilize the West Bank and harm Israeli security.

US Deputy Treasury Secretary Wally Adeyemo met with Bank of Israel Governor Amir Yaron to discuss extending banking relations with Palestinian banks for at least a year.
The current banking correspondence authorization between Israeli and Palestinian banks is set to expire on October 31, affecting transactions valued at nearly $10 billion.
US officials have expressed concerns that cutting off Palestinian banks could lead to economic instability in the West Bank, posing risks to both regional and Israeli security.
Treasury Secretary Janet Yellen and other US officials have raised the issue at international forums, including the Group of Seven finance ministers meeting.
The World Bank reports that Palestinian territories are nearing economic freefall, with Gaza's GDP declining sharply and the Palestinian Authority facing a significant financing gap.