Israeli bank plans September cutoff for 5 West Bank lenders
Why it matters: Palestinian officials warn the move could disrupt payments for electricity, water, fuel and salaries.
Israel Discount Bank plans to stop providing correspondent banking services to five West Bank lenders in September, a step Palestinian officials say could deepen the territory's financial crisis. The West Bank depends on Israeli banks to clear transactions because Palestinian banks do not have direct access to Israel's financial system, while the shekel is the main currency in circulation. Mohammad Manasra, deputy governor of the Palestine Monetary Authority, said the affected channels handle salary deposits, customs payments and imports including electricity, water, fuel and animal feed. The Palestinian Authority is already under severe strain after Israel halted transfers of tax revenue it collects on the authority's behalf.