Warren, Shaheen, Reed, Warner, Coons, and Schatz Urge Trump Administration to Ensure Banking Services Continue in West Bank, Avoid Dangerous Economic Collapse

Warren, Shaheen, Reed, Warner, Coons, and Schatz Urge Trump Administration to Ensure Banking Services Continue in West Bank, Avoid Dangerous Economic Collapse

"With days remaining and talks belatedly underway, it remains unclear whether these key banking services will continue"

Senate leaders also sound alarm on Israeli government policies exacerbating risk of collapse in West Bank

Text of letter (PDF)

Washington, D.C. - U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, Jack Reed (D-RI), Ranking Member of the Senate Armed Services Committee, Jeanne Shaheen (D-NH), Ranking Member of the Senate Committee on Foreign Relations, Mark Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, Chris Coons, member of the Senate Committee on Foreign Relations and Brian Schatz (D-HI), Ranking Member of the Subcommittee on the Department of State, Foreign Operations, and Related Programs Committee on Appropriations sent a letter to Secretary of State Marco Rubio and Treasury Secretary Scott Bessent urging them to engage the government of Israel to ensure it has taken all available steps to preserve correspondent banking relationships in the West Bankand avoid a potential economic collapse.

"We write to reiterate our alarm about the potential for a dangerous collapse in the West Bank now that the only two Israeli banks providing vital services for the Palestinian economy have signaled their intention to stop doing so," wrote the senators. "With days remaining and talks belatedly underway, it remains unclear whether these key banking services will continue."

In September 2025, senators raised concerns about the Israel's Ministry of Finance moving to cut off correspondentbanking relationships-a critical mechanism for banks to access the broader financial system-between Israeli and Palestinian banks. Recent press reporting indicates that Israel Discount Bank and BankHapoalim-the only two Israelibanks providing this function-could be gearing up to end these correspondent banking services on September 1 and October 1, respectively. According to reports, these banks indicated they have "lost their patience" with the Israeli Finance Minister's handling of a key waiver the Israeli government had been granting to the banks for years to ensure continuity of banking services.

The senators wrote this near-term crisis is compounded by other developments that lawmakers urged the Trump Administration to address last year. This includes three concrete steps the Trump Administration should take to avert further destabilization in the region including pressing the Israeli government to stop withholding clearance revenues and disrupting correspondent banking relationships, both critical to restoring the stability of the Palestinian economy and banking system.

The Senators concluded requesting a detailed response by September 9, 2026 explaining steps the Trump Administration is taking to avert further desperation and instability in the West Bank.

###

• Print
• Email
• Tweet