The United States government has expressed approval for Israel's decision to extend indemnification for Israeli banks, which supports correspondent banking relationships with Palestinian counterparts, by one year. This extension is seen as crucial for maintaining economic stability in the West Bank, a factor considered essential for both Israeli and Palestinian security.
In a joint statement from the Department of State and the Department of the Treasury, it was noted that "economic stability in the West Bank is essential for Israeli and Palestinian security, and correspondent banking is a key pillar of that economic stability." The U.S. acknowledged ongoing discussions with both the Government of Israel and the Palestine Monetary Authority regarding this issue.
The decision reflects continued cooperation between involved parties to ensure financial operations can proceed smoothly in the region.
