Israeli Bank Agrees to Resume Palestinian Clearing After State Indemnity

At least one Israeli bank has agreed in recent days to resume clearing payments between Israel and the Palestinian banking system after the state extended indemnity through the end of 2026. The clearing channel supports more than NIS 20 billion in annual trade between Israel and the Palestinian Authority. Security officials warned ministers that ending the arrangement could deepen instability, increase the risk of Palestinian Authority collapse, push transactions toward cash or foreign currencies, and weaken security monitoring. Finance Minister Bezalel Smotrich had used shorter indemnity extensions while seeking concessions connected to settlement expansion, new communities and agricultural farms.