Israeli banks postpone cutting ties with Palestinian Authority following a request by the Bank of Israel

It is very understandable that Israeli banks try to do business with the Arabs living in the Gaza Strip and West Bank. It has many benefits.

If Israeli banks were not doing the business, other foreign banks would step in perhaps from Iran, Russia or other hostile countries. 

"... Bank Hapoalim and Israel Discount Bank have served as correspondent banks for the financial system in the Palestinian Authority for decades. This activity is a vital pipeline for mutual trade worth tens of billions of shekels annually and allows ongoing payment for goods and services. The volume of trade with the Palestinian Authority is estimated at more than NIS 20 billion a year, in both exports and imports. A complete severance of relations could paralyze trade, lead to a monetary collapse in the West Bank, and harm many Israeli companies. ..."

Israeli banks postpone cutting ties with Palestinian Authority - Globes "The move follows a request from the Bank of Israel, which asked the two banks to continue providing financial services to prevent an economic upheaval."