Israel Extends Permission for Cooperation with Palestinian Banks

Media outlets have reported that Israeli Finance Minister Bezalel Smotrich has extended the timeframe allowing cooperation between the Israeli banking system and Palestinian banks in the West Bank. One spokesperson for the minister stated, "The Israeli finance minister has extended the exemption that allows cooperation between the Israeli banking system and Palestinian banks in the occupied West Bank." It is noted that the West Bank is facing a continuous deterioration in its financial situation since the outbreak of fighting between the Israeli army and Hamas on October 7, following Israel's decision to halt the delivery of all customs revenue it collects on behalf of the Palestinian Authority. Previously, the Israeli finance minister threatened in May to cut the banking channel between Israel and the West Bank in response to three European countries recognizing the State of Palestine. Recently, the Israeli cabinet approved the legalization of five settlement outposts in the West Bank, coinciding with the number of countries that recognized the Palestinian state. Meanwhile, the World Bank has warned of the possibility of a financial collapse in the Palestinian Authority.