RAMALLAH, July 23, 2026 (WAFA) – The PMA Governor, Yahya Shunnar, on Thursday called for urgent international action to help alleviate the challenges confronting the Palestinian banking sector as a result of Israeli measures and restrictions.
He emphasized that the continuation of these challenges is adversely affecting financial stability and the Palestinian economy.
The Governor made these remarks during a meeting with Timo Gossmann, Acting Head of the Mission of the Federal Republic of Germany to Palestine, and Ruth Müller, Deputy Head of Development Cooperation, Representative Office of Germany.
During the meeting, the Governor outlined the key challenges currently facing the Palestinian banking sector.
Shunnar explained that the ongoing accumulation of excess ILS cash holdings at Palestinian banks, resulting from restrictions on cash shipment, remains one of the sector's most pressing challenges, noting that the crisis has direct implications for banks' ability to provide financial services to the public and to finance various productive and vital sectors of the Palestinian economy.
In addition, he underscored the importance of preserving correspondent banking relationships, describing them as a fundamental pillar for maintaining the flow of trade, facilitating cross-border payments, and ensuring the uninterrupted supply of goods and services.
He warned that any disruption to these relationships would have far-reaching repercussions for the Palestinian economy and food security in Palestine.
The Governor stressed that the repercussions of these challenges extend across all segments of the economy, including the private sector, trade, and overall economic activity. He called on the international community—particularly Germany—to intensify its political efforts to help mitigate the impact of Israeli measures and support the stability of the Palestinian banking sector, enabling it to continue fulfilling its vital role in safeguarding the national economy as the sole channel through which the private sector can import the goods and essential supplies needed to sustain the livelihoods of thousands of families in the West Bank and the Gaza Strip.
Timo Gossmann, Acting Head of the Mission of the Federal Republic of Germany to Palestine, reaffirmed his country's commitment to closely monitoring economic and financial developments in Palestine.
He expressed appreciation for the PMA's efforts in addressing the current challenges and underscored the importance of maintaining ongoing dialogue and cooperation between the two sides on issues of mutual interest.
K.F.
