Bank Hapoalim granted a one-month extension for its banking relationships with Palestinian banks until August 13, 2026. This decision defies an Israeli government directive to extend these arrangements for six months.
The government mandate sought to maintain these ties until the end of the year. Israel Discount Bank offered a separate three-month extension, highlighting a lack of a unified position among Israeli lenders.
These relationships enable critical shekel transactions necessary for the Palestinian economy to function. The shortened extension has created widespread concern and uncertainty within the Palestinian banking sector.