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As the primary source of finance for both the governmental and private sectors, the banking industry is both one of the most significant parts of the Palestinian financial system and the most significant contributor to overall financial stability.As a result, the West Bank and Gaza Strip were declared to accept Israeli currency.Like all other sectors, the Palestinian banking industry saw deliberate infrastructural devastation following Israel's takeover of the Palestinian lands in 1967.According to various Israeli publications, the banking laws in the Palestinian territories have altered.
As the primary source of finance for both the governmental and private sectors, the banking industry is both one of the most significant parts of the Palestinian financial system and the most significant contributor to overall financial stability. As a result, both direct and indirect effects of the banking sector's developments can be seen on overall economic activity.
Like all other sectors, the Palestinian banking industry saw deliberate infrastructural devastation following Israel's takeover of the Palestinian lands in 1967. Israel closed all of the bank's branches in the West Bank and Gaza Strip in accordance with the military order, froze all accounts, and transferred all funds to the Central Bank of Israel. In the West Bank and Gaza Strip in 1967, there were 38 banks functioning, including Jordanian, Egyptian, and foreign institutions. According to various Israeli publications, the banking laws in the Palestinian territories have altered. It attempted to sever direct financial ties with Arab nations and shuttered Arab banks in Palestine. As a result, the West Bank and Gaza Strip were declared to accept Israeli currency.
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