- BIST10011,619-0.88%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,199.00+0.43%
- INTEREST37.00%-1.00
- BITCOIN82,693+0.83%
- October 19, 202616°
- BIST10011,619-0.88%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,199.00+0.43%
- INTEREST37.00%-1.00
- BITCOIN82,693+0.83%
- October 19, 202616°
Palestinian Monetary Authority chief Yahya Shennar says banks are ready to lead Gaza reconstruction
Palestinian Monetary Authority President Yahya Shennar said Palestine’s banking sector is ready to lead the reconstruction of Gaza. Shennar said reconstruction costs had exceeded $71 billion and called on the World Bank Group to provide guarantees and risk-sharing support.
Palestinian Monetary Authority President Yahya Shennar called for the reconstruction of Gaza to be carried out under the control of the Palestinian administration, with local capacity included in the process.
Shennar addressed the reconstruction of Gaza at a meeting in Bangkok, the capital of Thailand, attended by the heads of Arab countries’ central banks and World Bank Group President Ajay Banga. He said the capabilities of Palestine’s banking sector and private sector should be used in the reconstruction process.
Shennar called for preserving banking integration and financial and economic ties between the occupied West Bank and the Gaza Strip, saying this would ensure that resources are directed toward national priorities.
Shennar said Palestine’s local banking sector is ready to lead the reconstruction of the Gaza Strip and announced that the cost of recovery and reconstruction had exceeded $71 billion.
Call for guarantees and risk-sharing to secure financing
Shennar called for restrictions on the return of excess cash liquidity to be lifted to ensure the smooth continuation of financing flows.
Calling on the World Bank Group to lead international efforts to provide support, Shennar requested that the scope of financing through existing funds be expanded. He also called for guarantees and risk-sharing mechanisms to be provided and for the mechanisms of the International Finance Corporation and the Multilateral Investment Guarantee Agency to be activated.
Thirteen banks operate in the Palestinian market
Under the Paris Economic Protocol signed in 1994, the Palestinian Monetary Authority serves as the institution responsible for supervising and regulating the banking sector. It also operates as the official financial adviser to the Palestinian administration.
A total of 13 banks operate in the Palestinian market, including seven local and six foreign banks. Five of the foreign banks are based in Jordan and one in Egypt.
Israel’s Discount and Hapoalim banks handle Palestinian banks’ relations with Israel’s banking system. These relationships cover the sending and receipt of cash transfers, particularly for commercial payments.
Correspondent banking links with Israeli banks
The Israeli government granted exemptions to two Israeli banks three years ago because of lawsuits filed in the United States against the Palestinian administration and Palestinian banks over allegations of “transferring money to terrorist groups.”
Without the exemption decision, which is renewed each year, Israeli banks face the risk of lawsuits both in Israel and in U.S. courts.
Following Israel’s attacks on the Gaza Strip in October 2023, the renewal period for the correspondent banking agreement was reduced from one year to three months.
Despite the ceasefire declared on October 10, 2025, attacks in the Gaza Strip have continued, while the entry of humanitarian aid into the area, where approximately 2.4 million Palestinians live, has been restricted.
Stay Updated with Hilal Times
Subscribe to be informed about special news, developments and announcements. We will keep you informed.
By signing up, you agree to our Privacy Policy
