The United States has expressed approval of Israel's decision to extend indemnification for Israeli banks by one year. This move supports correspondent banking relationships with Palestinian counterparts, which are considered vital for economic stability in the West Bank. The U.S. government emphasizes that such stability is crucial for both Israeli and Palestinian security.

In a joint statement, the Department of State and the Department of the Treasury highlighted the importance of these banking relationships as a key pillar of economic stability in the region. The statement also acknowledged ongoing discussions with both the Government of Israel and the Palestine Monetary Authority regarding this issue.

"The United States welcomes the Government of Israel’s decision to approve a one-year extension of its indemnification for Israeli banks, which underpins correspondent banking relationships with Palestinian counterparts," read part of the statement. It further noted, "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. appreciates continued engagement with relevant authorities on this matter, reinforcing its commitment to fostering regional economic cooperation.