U.S. Treasury Concerned Over Israeli-Palestinian Banking Tensions

U.S. Deputy Treasury Secretary Wally Adeyemo expressed concerns to Bank of Israel Governor Amir Yaron about threats to sever banking ties between Israeli and Palestinian banks. He emphasized the need to extend these relationships for at least a year to maintain financial stability.

U.S. Deputy Treasury Secretary Wally Adeyemo spoke with Bank of Israel Governor Amir Yaron on Monday, articulating Washington's concerns over potential termination of correspondent banking relationships between Israeli and Palestinian banks.

In a statement, the Treasury Department highlighted that Adeyemo stressed the importance of extending these financial relationships for a minimum of one year, advising caution against any abrupt severance threats from elements within the Israeli government.

Maintaining these connections is seen as crucial for regional financial stability and continued cooperation between the banks of both nations.

(With inputs from agencies.)