Amid Prospect of War, Israel Deepens Palestinian Banking Ties
- Israel to create entity to clear Palestinian bank transactions
- Entity will end risk of terror-finance suits for Israeli banks
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Israeli and Palestinian authorities have agreed on a new mechanism to facilitate Palestinian banking transactions, which would eliminate the threat of terrorism-financing lawsuits for Israeli banks and improve transparency in the Palestinian economy.
Even as violent protests on the Gaza border threaten to spiral into war, Israel’s cabinet approved a joint proposal by the country’s central bank and the Palestine Monetary Authority to form a state-owned Israeli entity to help approve checks and wire transfers from banks operating in Palestinian territory, PMA Governor Azzam Shawwa said in an interview in his Ramallah office.