Central Bank warns of Palestinian banking crisis
The Governor of the Palestinian Monetary Authority, Yahya Shanar, warned of the escalating financial and banking crisis in Palestine due to Israeli measures, which are causing an accumulation of over 15 billion shekels of excess cash held by Palestinian banks and threatening the stability of the financial system. He pointed out that these restrictions hinder the movement of funds and harm the ability of financial institutions to finance economic activities and meet the needs of individuals and businesses. He explained that their continuation obstructs banking correspondent relationships and affects payments and commercial transactions. Shanar affirmed that despite these difficult circumstances, Palestinian banks continue to perform their duties and maintain a high capital adequacy ratio exceeding 17%, in line with international standards to strengthen confidence and financial stability. He also clarified that there is a need to establish stable banking arrangements that ensure the continuation of relations with Israel and the repatriation of excess cash in a manner consistent with the Palestinian economic activity. He called for international support to preserve the stability of the Palestinian financial system and prevent the crisis from worsening.
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