Israeli banks Hapoalim and Discount have informed Palestinian banks of their intention to halt vital correspondent banking services within weeks, news agency AFP reported. The Israeli finance ministry said that the decision was made due to "increasing public risks and concerns about private lawsuits that could target Israeli banking institutions". Palestinian banks are linked to Bank Hapoalim and Bank Discount through correspondent banking relationships, an operational link connecting the Palestinian banking system to the Israeli financial system. The arrangement also allows for returning surplus shekel banknotes accumulated in Palestinian banks to the Israeli banking system, and facilitating transfers between Palestinian and Israeli companies. It means that it is Israeli land, and dealings will be with companies, not with the Palestinian Authority,” he explained.