The Mossawa Center held a meeting with senior officials from the Bank of Israel this week, demanding that the bank ensure the expansion of banking services in Palestinian Arab towns. The meeting, which took place in Jerusalem, included Tali Kessar, Deputy Director of Bank Supervision, Yoav Soffer, Advisor to the Governor of the Bank of Israel, and a professional team from the bank’s administration. Representing the Mossawa Center were Director Jafar Farah, Executive Director Suha Salman Mousa, and Coordinator of Legal and Parliamentary Advocacy Nibal Ardat.
The meeting focused on the Bank of Israel’s responsibility to expand financing sources for mortgage loans, small businesses, and families, as well as the accessibility of banking services for Palestinian Arab citizens.
Tali Kessar, Deputy Director of Bank Supervision, opened the meeting by acknowledging the importance of the issues raised by the Mossawa Center. Yoav Soffer and the research department team presented the Bank of Israel’s studies and initiatives related to the Palestinian Arab community.
Vered Yift, from the bank’s community outreach team, introduced a new financial education plan, recently developed to enhance financial literacy and promote sound financial management in Arabic-language educational programs. The Bank of Israel will allocate 5 million NIS to implement this plan in educational and community institutions. The initiative includes the publication of guidance books and interactive educational tools to accompany financial literacy activities.
The bank agreed to open the financial education strategy for review, allowing experts and Palestinian Arab institutions to provide feedback before its implementation. A dedicated conference will be held to present the plan to Palestinian Arab representatives.
Mossawa Center Director Jafar Farah emphasized the need for banking programs and services to be tailored to the Palestinian Arab community, criticizing the outsourcing of some financial initiatives to external entities without involving specialized Palestinian Arab institutions.
The meeting also included discussions on expanding banking services in Palestinian Arab towns, revealing critical studies highlighting major disparities. Notably, only 2.8% of mortgage loans are granted to Palestinian Arab families. On average, Palestinian Arab citizens receive 400,000 NIS less in housing loans than Jewish citizens.
Nibal Ardat, the Mossawa Center’s Coordinator of Legal and Parliamentary Advocacy, stressed the need to hold banks accountable for expanding their branches in Palestinian Arab localities and improving financial tools available to the community. She called for direct meetings between Palestinian Arab citizens and banking executives, as well as with pension and savings fund representatives. The Bank of Israel committed to exploring the possibility of arranging such meetings to discuss practical solutions.
Suhad Salman Mousa, Executive Director of the Mossawa Center, highlighted the urgent need for the Bank of Israel to intervene in land allocation policies. The lack of regulated land ownership in Palestinian Arab communities remains one of the biggest obstacles to securing mortgage loans. She urged banks to develop financial products tailored to the needs of the Palestinian Arab community, particularly for housing loans and small business financing.
Additionally, she stressed the importance of involving Palestinian Arab representatives in the legislative process to ensure banking laws reflect their needs and prevent their economic marginalization.
The Mossawa Center will collaborate with digital payment providers such as Bit, Visa, and Israel Card to encourage the wider adoption of modern payment methods within the Palestinian Arab community.
The Mossawa Center also demanded increased Palestinian Arab representation in banking institutions, including within the Bank of Israel itself. To facilitate this, the Mossawa Center proposed organizing meetings between Palestinian Arab local government leaders and Bank of Israel officials to enhance communication and ensure genuine inclusion in financial decision-making.
Jafar Farah emphasized that the financial integration of Palestinian Arabs goes beyond expanding banking services. It requires comprehensive policies that promote competition among banks, ensure financial transparency, and reduce reliance on the informal economy. "A modern economy cannot function effectively while excluding 20% of its population from the financial system in an equitable and just manner," Farah concluded.
