Private Banking
Banks in Palestine play a major role in enhancing Palestinian economic
performance by financing projects and businesses. Presently, 22
banks with 115 branches are operating in Palestine. Total deposits
held by customers have grown substantially in the last few years,
from $180 million at the end of 1994 to $2.97 billion at the end
of February 2000. The PMA monitors the banking sector closely to
assist the expansion through the consistent application of prudent
and sound banking practices.
Some of the banks operating locally in Palestine have been rated
AA under the Thompson rating system.
If you are interested in speaking with any
particular bank in Palestine, or learning more about their policies,
please contact
them during regular working hours 8.30am – 12pm, Saturday – Thursday.
For a complete list of the banks in Palestine,
please use our search engine under sub-section “Finance”.
LINK to our database search engine
Banks in Palestine
COMMERCIAL BANKS perform general financial
activities such as financing working capital, term finance,
import and export facilities, and deposit services. They
also allocate and invest financial resources in a variety
of economic sectors. Most of the operating banks in Palestine
are commercial banks.
INVESTMENT BANKS offer long-term
lending to a wide variety of economic sectors. They
finance equity
for start-ups and hence contribute to enlarging business
activities in the country.
ISLAMIC BANKS are characterized by an approach
that avoids the payment and receipt of interest.
This may include the bank acquiring machinery
and/or goods on behalf of companies and reselling it to the borrower
with a mark-up. Their services are offered primarily in the large
cities
of the West Bank and Gaza Strip. Three banks currently offer Islamic
banking and other large banks have developed Islamic banking in
certain branches.
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| Source: MET 1998 |
The banks in Palestine use modern technology to service their
customers. Among the services available are:
• Advanced computer systems
• Automated Teller Machines (ATMs) nationwide
• Telephone banking
• And online or Internet banking
The lending institutions in general, and the banking sector
in particular, have done a formidable job of moving the Palestinian
economy forward.
Electronic Check Clearing
In addition, a private limited-liability Banking Services Company
exists to provide electronic banking services for check clearance
and settlement, among other services.
This is a first in the region, and comes as part of the privatization
of public services, as clearance and settlement services are
usually provided by central banks. The Banking Services Company
has greatly increased the efficiency of the banking industry
by expediting check clearance and settlement activities.
Business & Private Loans
Through the expansion of the Lending Policy governing private
and business loans, existing businesses have expanded and new
ones have developed. This, in conjunction with increasing customer
awareness of the opportunities available to them through the
banking system and the improved laws, has led to foreign development
loan institutions opening their doors. The larger institutions
offer even more liquidity and opportunities for small businesses
in the country.
The lending institutions and local specialized forums have also
helped local businessmen by offering training programs on running
businesses, and as a result, more businesses have expanded.
In addition to business loans, banks and lending institutions
are also providing persons with home and private loans.
Opening an Account
In order to open a corporate bank account in Palestine, the following
documents are needed:
• the registration of the company,
• the passports of the signatories, and
• an official letter from the company’s Board of Directors
listing the assigned signatories.
There is no charge for opening an account; however, a minimum
amount must be deposited and maintained in order for the account
to remain open. This amount will vary from bank to bank and from
currency to currency.
Accounts can be opened in Israeli Shekels, Jordanian Dinars
and US Dollars. 
The clearance time for a local or Israeli check is 3-4 working
days. The use of credit cards is not yet widespread in Palestine,
but the banks that issue the cards are working to promote this
service among consumers and merchants.
The preferred method of payments for businesses with international
dealings is the money transfer (wire) method. The majority of
local, receiving banks do not apply a service charge for incoming
money.
To issue a Letter of Credit or a Letter of
Guarantee through Palestinian banks, business clients must have
a certain amount
of funds deposited in the account. This amount is based on
the client’s credit line. The fees charged for issuing a
Letter of Credit is in the approximate range of 2%-3.5% per year
plus
SWIFT or fax fees.
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