In response to reports that several EU nations are considering personal sanctions against Israeli citizens living in Judea and Samaria, Finance Minister Bezalel Smotrich issued a firm message today (Wednesday) to Bank Supervisor Daniel Hahiashvili. Smotrich criticized what he described as the banking system’s “zero-risk” approach, accusing banks of abandoning Israeli clients under the pretext of complying with international sanctions.
Smotrich argued that, "A responsible risk management policy cannot ignore the significant harm done to law-abiding Israeli citizens who operate legally and in service of the state. It is unacceptable for banks to take the easy route and neglect their clients without making any effort to support them."
He urged financial institutions to stand up against what he views as unjust measures, suggesting they leverage their legal, financial, and global influence. This could include challenging the sanctions in European courts, applying diplomatic pressure, and taking a public stance against the decisions. "The banks’ substantial profits should enable them to assume reasonable risk on behalf of their customers, especially in the face of what is a national moral injustice," Smotrich added.
The minister also warned that if banks continue to comply passively with foreign directives that harm Israeli clients, he will push for immediate legislation mandating significant compensation for affected customers.
Additionally, Smotrich said that should the banks fail to respond adequately, he would consider compelling the Bank of Israel to step in and provide financial services to those impacted by sanctions. This, he explained, would reinforce Israel’s sovereignty and commitment to protecting its citizens. “The State of Israel will not accept external interference in its internal matters and will not forsake its citizens in the face of international delegitimization,” he concluded.