"Israel's Threat" to Isolate Palestinian Banks

U.S. Treasury Secretary Janet Yellen mentioned on Thursday that she is concerned about Israel's threat to cut ties between Palestinian banks and Israeli correspondent banks, a step that could close a vital artery feeding the Palestinian economy. She stated that the U.S. and its partners "need to do everything possible to increase humanitarian assistance for Palestinians in Gaza, contain violence in the West Bank, and seek to stabilize the economy in the West Bank." She continued: "It is important to maintain correspondent relationships between Israeli and Palestinian banks to allow the struggling economies of the West Bank and Gaza Strip to function and contribute to ensuring security." She indicated that she would make every possible diplomatic effort to ensure the continuation of Israeli-Palestinian banking relations. She said, "These banking channels are vital for handling transfers that facilitate imports from Israel worth approximately eight billion dollars annually, including electricity, water, fuel, and food, in addition to facilitating exports worth about two billion dollars annually that Palestinians depend on for their livelihoods." She added that Israel withholding revenues it collects on behalf of the Palestinian Authority also threatens the stability of the economy in the West Bank.