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."

A growing payment network in Africa is letting participating banks settle cross-border transactions directly in local currencies

Good news!

"... with payments processed in seconds rather than days. Such transactions have long been settled in dollars or euros, adding significant delays and fees even when both the sender and recipient were in Africa. The Bank of Central African States recently joined the initiative, bringing the network to 28 African countries."

"“The Bank of Central African States (BEAC) has officially joined the Pan-African Payment and Settlement System (PAPSS), marking a significant step in strengthening Africa’s cross-border payment infrastructure and opening a new chapter for financial integration in Central Africa while driving greater intra-African trade. ..."

"... As one of only two regional central banks on the continent, BEAC serves the six member countries of the Central African Economic and Monetary Community (CEMAC)—Cameroon, Central African Republic, Republic of Congo, Gabon, Equatorial Guinea and Chad. Its participation provides PAPSS with a strategic entry point into Francophone Africa and significantly expands the reach of the network across the continent.

With BEAC joining the network, PAPSS now connects 28 African countries, bringing together more than 190 commercial banks and fintechs, supported by 16 switches. Through its extended network partners, PAPSS participants are also able to send money to more than 250 additional financial institutions. ..."

Doomslayer: Progress Roundup - by Malcolm Cochran

Pan-African Payment Network Expands Into Central Africa

BEAC Joins PAPSS, Connecting Payments between CEMAC and the Rest of Africa (original news release)

Israeli banks cutting ties with Palestinian Authority

An example of reality is stranger than fiction!

This reminds of one of Lenin's famous quotes: The capitalists will sell us the rope with which to hang them” (attribution is in question)

The PA has been known since at least the Munich Olympic Games massacre of 1972 to be involved in terrorism.

Israeli banks cutting ties with Palestinian Authority - Globes "Discount Bank and Bank Hapoalim are demanding that the government should replace them in providing correspondent bank services, amid growing fears of involvement in terror financing."

The Never-Ending Credit Crunch and great stagnation in the UK since the 2008-09 financial crisis

Recommendable! Will the new Prime Minister Andy Burnham make a difference?

Caveat: I did not read the entire briefing.

"[Findings]:

• The UK is now around 40 per cent poorer per person than the US, having been on course for near economic parity as recently as 2007. If it were a US state, the UK would be the poorest in the union, ranked below Mississippi.
• Britain has not always been outpaced by the US. Between 1955 and 2008, the UK experienced an annual trend rate of real growth per person of 2.3 per cent, slightly faster than the US at 2.1 per cent.
• After the Global Financial Crisis, the US suffered a drop in the level of economic activity but then essentially returned to trend growth. In contrast, the UK experienced both a sharp drop in the level of economic activity and a decline in the subsequent rate of economic growth.
• Austerity cannot explain the UK’s underperformance since the US pursued a similar policy over the same period.
• The real cause was post-2009 banking regulation, which required banks to substitute perceived low-risk lending to governments for lending to business.
• The effects of regulation fell disproportionately on the UK’s bank-dependent economy, and undermined lending to small and medium-sized businesses, inhibiting their ability to grow. The US was less affected due to its greater reliance on non-bank credit and the abundance of small banks subject to fewer regulatory requirements.
• Whereas US lending to non-financial businesses recovered by mid-2013, in the UK bank lending remains 15 per cent below its early 2008 level.

"

The Never-Ending Credit Crunch "Britain’s weak recovery from the 2008-09 financial crisis was caused by post-crisis banking regulation, not fiscal austerity or an inevitable feature of deep recessions, according to a new briefing from the Institute of Economic Affairs. The briefing, by Tyler Goodspeed, formerly Chairman of the White House Council of Economic Advisers, sets out the case that Britain’s slow recovery was a policy choice rather than a historical inevitability. ..."

Israeli cybersecurity tycoon Nir Zuk to buy Californian bank for AI overhaul

Good news! What will the synergy between banking and AI bring? Coming from a cybersecurity background is probably a benefit.

"Israeli cybersecurity tycoon Nir Zuk announced this morning that he plans to buy California’s Liberty Bank. As part of the move, Zuk plans to make the medium-sized bank based entirely on AI tools. ..."

Zuk to buy Californian bank for AI overhaul - Globes "Cybersecurity tycoon Nir Zuk plans transforming Liberty Bank into a bank based on the AI tools he developed at Esh Bank in Israel."

Uzbekistan's Uzum valuation leaps over 50% in 7 months to $2.3B

Good news!

"Uzbekistan fintech Uzum has reached a $2.3 billion valuation — about 53% higher than just seven months ago — as investors place growing bets on the country’s emerging digital economy.

The valuation stems from a $131.5 million investment led by sovereign wealth funds from Oman, with participation from existing investors, including Tencent, VR Capital, and FinSight Ventures. ...

Uzbekistan, Central Asia’s most populous country, emerges as one of the region’s fastest-growing digital economies, driven by a young population, rapid smartphone adoption, and low [fast] penetration of online retail and banking services. ..."

Uzbekistan's Uzum valuation leaps over 50% in 7 months to $2.3B | TechCrunch

Disclaimer:

I am currently blogging from behind the Great Firewall of China.

My Internet service in China is very spotty. Thus, I am not able to blog as usual.

Why Europe Is Creating an Alternative credit card to Visa & Mastercard

Recommendable! What took so long? Cash was king in many European countries?

Caveat: When government creates or promotes businesses they may fail!

(261) Why Europe Is Creating an Alternative to Visa & Mastercard - YouTube

Filipinos prefer e-wallets to banks as financial services entry point

Who needs traditional banks in the age of digital currency?

Filipinos prefer e-wallets to banks as financial services entry point - Nikkei Asia "Report says 35% of population use digital services like GCash in country where 50% are unbanked"

Mobile-Phone Technology Powers Savings and banking Surge in Developing Economies

Good news! 

It has been reported for years that financial services via smartphone in less developed countries are progressing at a much faster pace and are more advanced  than in developed countries.

Do more with your phone!

"“More adults than ever in low- and middle-income countries now have bank or other financial accounts, leading to a rise in formal saving, according to the World Bank Group’s Global Findex 2025 report. ...

In 2024, 40% of adults in developing economies saved in a financial account in 2024—a 16-percentage-point increase since 2021 and the fastest rise in more than a decade. ..."

"... Mobile-phone technology played a key role in the surge, with 10% of adults in developing economies using a mobile-money account to save—a 5-percentage point increase from 2021. ...

Higher personal saving—through banks or other formal institutions—fuels national financial systems, making more funds available for investment, innovation, and economic growth.

In Sub-Saharan Africa, formal savings increased by 12-percentage points to 35% of adults. ..."

Mobile-Phone Technology Powers Saving Surge in Developing Economies - Human Progress

Mobile-Phone Technology Powers Saving Surge in Developing Economies

Three Sahel States form a Confederal Bank to promote infrastructure and agriculture investments

Good news!

Polish AI insurtech startup Ominimo bags its first investment at a $220M valuation and gives employees autonomy to innovate

Good news!

"How do you get talented engineers to work for a startup in a mundane field at a time when more exciting companies are paying well and hiring aggressively? Here’s an answer from one insurance startup out of Poland called Ominimo: make pay competitive, but more importantly, give those engineers the license to apply their talent and reinvent how the field works. 

Launched on a bootstrapped budget just 12 months ago, Ominimo believes it’s found a different and better approach to understanding and pricing risk. The company says it’s already profitable and growing fast, with 300,000 policies signed up in its first market of Hungary. Now, to fuel its next stage of life, it’s taking its first outside investment from a strategic backer, Zurich Insurance Group. ..."

AI insurtech Ominimo bags its first investment at a $220M valuation | TechCrunch

Wells Fargo Bank or how not to pay rent with a co-branded credit card

A business mishap! 😊

"$10 million

Wells Fargo is losing up to this amount every month on a co-branded credit card with fintech startup Bilt that allows users to pay rent without incurring fees from their landlords, according to current and former employees. Executives made internal projections on key revenue drivers, such as the likelihood that cardholders would carry balances, that turned out to be inaccurate."

The Wall Street Journal What's news

China’s Punishment for for over 8 million People With Bad Debts: No Fast Trains or Nice Hotels

Living under a communist party rule!

"8.3 million

The number of delinquent debtors on China’s publicly available government blacklist—an increase of nearly 50% since late 2019. Beijing is seizing debtors’ salaries, restricting their plane and high-speed train travel, and banning purchases of expensive insurance policies. Authorities can detain the noncompliant. Many families, worried about the crackdown, are being more conservative with their money—which doesn’t help China’s economic growth. Beijing prohibits most people from declaring bankruptcy."

China’s Punishment for People With Bad Debts: No Fast Trains or Nice Hotels - WSJ Beijing’s crackdown on millions of delinquent debtors makes catching up on unpaid bills a slog

The Wall Street Journal What's news

Why India's Reserve Bank has Halted Payments Giant Paytm's Services with Palki Sharma

Recommendable! Chinese Alibaba owns about 10% of this major Indian digital payment company.

Britain and Switzerland agree wide-ranging financial services trade deal

Good news! Brexit keeps on giving!

Swiss news media claim it is a globally unique agreement!

"Britain and Switzerland signed a wide-ranging financial services deal on Thursday [12/21/2023] granting reciprocal market access for their banks, insurers, asset managers and stock exchanges to boost trade and cut compliance costs.

After two years of talks which began after Britain left the European Union, the deal - which will require British and Swiss parliamentary approval - is based on mutual recognition of rules and supervisors, easing regulatory burdens. ..."

Britain and Switzerland agree wide-ranging financial services trade deal | Reuters

Israeli digital insurance company Lemonade launches car insurance

Will this insurance also sell policies for lemon cars?

Lemonade launches car insurance - Globes The Lemonade app uses telematics to measure how much and how safe people drive, as well as provide 24/7 on-location roadside assistance, real time crash detection, and dispatch of emergency services.