OSLO, October 12, 2026 (WAFA) – Norway’s sovereign wealth fund has withdrawn its investments from five Israeli banks—including First International Bank of Israel—in a move described as part of an ethical review of its holdings in the Israeli banking sector.

The fund announced its decision on October 12, 2026, noting that the total value of its stakes in the five banks stood at approximately $661 million as of the end of last June, according to media reports.

First International Bank of Israel is among the institutions affected by the decision, despite having posted positive financial results for the second quarter of the current year; its net income reached 583 million shekels, up from approximately 480 million shekels in the first quarter.

It is worth noting that Norway’s sovereign wealth fund—the world's largest, valued at $2 trillion—had previously decided in August of last year to divest from the US-based Caterpillar Inc. and five Israeli banks for "ethical reasons."

The Israeli banks covered by the decision include First International Bank of Israel, FIBI Holdings, Bank Leumi, Mizrahi Tefahot Bank, and Bank Hapoalim.

The fund, managed by the Central Bank of Norway, stated that these entities were excluded "due to the unacceptable risk that the companies contribute to serious violations of individuals' rights in situations of war or conflict." The fund's ethics council stated, "According to the council's assessment, there is no doubt that Caterpillar products are being used to commit widespread and systematic violations of international humanitarian law."

It added, "Israeli authorities have used [Caterpillar-manufactured bulldozers] in large-scale, unlawful demolitions of Palestinian property."

The council noted that these violations are occurring in both Gaza and the West Bank, adding that "the company has also failed to implement any measures to prevent such use."

K.T