The United States government has emphasized the importance of economic stability in the West Bank for both Israeli and Palestinian security. A key aspect of this stability is the ability to conduct transactions in shekels efficiently. Recently, Israel's government approved a 30-day extension of indemnification for Israeli banks, allowing them to maintain correspondent banking relationships with Palestinian counterparts.

However, the short-term nature of this extension raises concerns about potential crises by November 30. This situation creates uncertainty for international banks, Israeli companies operating in the West Bank, and ordinary Palestinians who are most affected by such instability.

The termination of these banking ties could lead to significant economic disruption in the West Bank, posing a threat to regional security. The United States shares this concern with the G7 and other close partners. The U.S. government's engagement with both public and private sectors in Israel and the West Bank provides confidence that Palestinian banks are managing terrorist financing risks adequately.

The U.S. government urges Israel to extend indemnification for these crucial banking relationships for at least one year. Additionally, it calls for future renewals to be transparent, predictable, and free from political influence.

"Cutting off these banking ties would create significant economic turmoil in the West Bank," stated a U.S. official.

"Our deep concern is shared by the G7 and many of our closest partners."

"The U.S. Government calls for the Government of Israel to swiftly extend the indemnification for these essential banking relationships for at least one year."

"We also call for future renewals to be transparent, predictable, and de-politicized."