The ranking member of the U.S. Senate Committee on Banking, Housing and Urban Affairs and five other senior senators have urged the State and Treasury secretaries to press Israel to preserve correspondent banking relationships between Israeli and Palestinian banks, warning that their loss could contribute to an economic collapse in the West Bank. Recent reports indicate that Israel Discount Bank and Bank Hapoalim, the only two Israeli banks providing these services, could end them on Sept. 1 and Oct. 1, respectively, amid concerns over the Israeli government’s handling of a waiver that has supported their continuation. The senators also called on the administration to address Israel’s withholding of clearance revenues and requested a detailed response by Sept. 9, 2026, outlining steps to avert further instability.
2026-08-28U.S. Senate Committee on Banking, Housing and Urban Affairs
U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member urges action to preserve West Bank correspondent banking services
Senior U.S. senators urged the State and Treasury secretaries to press Israel to preserve correspondent banking services between Israeli and Palestinian banks. The only two Israeli providers could end those services on Sept. 1 and Oct. 1, raising concerns about economic instability in the West Bank.