Israeli Bank HaPoalim Forced to Continue Services to Gaza

http://www.israelnationalnews.com
By Hana Levi Julian

(IsraelNN.com) Two Israeli banks decided within the last month to end services to Gaza in view of the government's decision to designate the Hamas-controlled region as an "enemy entity" – but the Bank of Israel is blocking the move.

The national bank has ordered Bank HaPoalim to postpone its decision to cut off operations in the Gaza region until an alternative is found for the local population.

Bank of Israel officials said this week that they fear a cash flow problem would exacerbate problems in Gaza. Bank HaPoalim was ordered to continue operations in the region until a solution such as the Postal Bank is established. Another option under consideration is development of a relationship with Egyptian banks.

The original decision by Bank HaPoalim, Israel's largest commercial bank, prompted Palestinian Authority bankers to voice concerns that other Israeli banks would follow its lead. Their fears were soon realized; Israel Discount Bank announced this month that it too would halt services to PA-controlled banks in Gaza.

In a statement sent to the media, bank officials said, "Following the government's decision to list the Hamas-run Gaza Strip as a 'hostile entity,' Discount management has decided to halt its activities with branch offices and other banking establishments."

Bank HaPoalim said it was currently reviewing its policies with regard to affiliates in PA-controlled Judea and Samaria.

Israel Discount said it would also consider halting services to banks in PA-controlled Judea and Samaria, in light of Gaza's designation as an enemy entity and its status as in integral part of the PA.

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