Banking System

IBI Mutual Funds chairperson Ela Alkalay warns that the Israeli financial market is dangerously ignoring the risk of international sanctions over settlement activity and E1 corridor development, comparing the potential economic fallout to the isolation of Russia.

The Bank of Israel has finalized new crypto banking guidelines effective May 2027, abolishing the automatic 100,000 shekel threshold for source-of-funds checks and shifting to a risk-based approach.

Supervisor of Banks Daniel Hahiashvili called for a revision of outdated banking wage caps to prevent talent drain, while affirming the banking sector's resilience against potential housing market corrections.

Israel's banking system is facing a major crisis regarding financial cooperation with the Palestinian Authority. Findings published by Finance Minister Bezalel Smotrich prove that the Authority's official banks serve as conduits for transferring funds to terrorists and their families.

The Financial Times reveals that several economic organizations of the Iranian government continue to operate freely in a country that has been attacked by the Islamic Republic. Citizens in Iran are furious over the fuel price hike: "The only thing that doesn't go up is our salary."

The US Treasury Department is working to deny an Egyptian bank in the UAE access to the US financial system after it allegedly transferred $1.8 billion for Iran's "shadow banking" networks. Simultaneously, sanctions were imposed on an Iranian bank manager and a Hong Kong company.

The two Israeli banks acting as intermediaries for the Palestinian banking system are expected to postpone the cessation of operations by several months, Globes has learned. This comes at the request of the Bank of Israel, with the goal of finding a permanent solution to prevent chaos.

Media personality and influencer Corrin Gideon revealed that she faced a payment refusal while shopping at a mall, coinciding with reports of a widespread national credit card processing malfunction.

Discount and Hapoalim banks have announced they will cease providing services to the Palestinian Authority, but the state-owned company intended to replace them has not yet been established. As learned, there is significant difficulty in staffing the board of directors due to fears of legal and international exposure regarding the Palestinian banking system's alleged involvement in terror...

First publication: For years, Finance Minister Bezalel Smotrich has used Israeli clearing for the Palestinian banking system as a tool of pressure. At a recent cabinet meeting, Itamar Ben Gvir told him: "You sold your principles for the sake of building a few houses." The Shin Bet under David Zini warned that without financial oxygen for banks in the West Bank, the PA faces collapse.

Bank Jerusalem has denied recent rumors, stating that no evidence of abnormal activity was found. Against this backdrop, we examined whether large-scale embezzlement remains possible today, given the tightened control mechanisms implemented after the 2002 Eti Alon and Trade Bank affair, in which 250 million shekels were stolen.

After Discount and Hapoalim banks announced they would stop money transfers to Palestinian banks due to fears of links to terrorism, the move is expanding to banks in neighboring countries. Foreign currency trading will continue, which may hinder oversight.

The Banking Supervision Department at the Bank of Israel has proposed extending the automatic payment routing service for customers switching banks by three years. The measure aims to ensure financial continuity.

The expected cessation of bank transfers between Israel and the PA in September-October threatens financial chaos. This move creates risks for trade and security, forcing businesses to shift to cash transactions.

Israeli banks are refusing to cooperate with their Palestinian counterparts. We explain what correspondent banking is and why this financial system is currently under threat.

As part of regulatory efforts to boost competition, major Israeli banks have reduced their representation on the Masab board. New directors from fintech and digital banking sectors have been appointed.

Horizon, a company under the Altshuler Shaham group, is launching a move that solves the main headache for investors and allows for the transfer and liquidation of digital currencies purchased on foreign exchanges into the banking system.

The Palestinian Authority blames Israel for the current crisis, but sources in Jerusalem claim that Ramallah has failed to fulfill its commitments to combat money laundering and terrorism financing, leading Israeli banks to threaten a cutoff of services.

The stalled legislation regarding clearing payments between Israeli and Palestinian banks is not an economic issue, but a strategic security one. By blocking this decision, Finance Minister Bezalel Smotrich is shifting the risks of terror financing onto Israel's private banking sector.

The major banks in Israel surprised the Ministry of Finance and announced an early severance of financial ties with the Authority. The reason: fear of lawsuits over terror financing and a lack of backing from the state.