Questions mount over funding as violence mars London Kashmir protest

Israeli banks have informed Palestinian financial institutions that they plan to end key banking services within the coming weeks, a move that has sparked concerns about serious economic disruption in the occupied West Bank. Officials on both sides say the decision could affect trade, salaries, and the daily financial operations that rely on cooperation between the two banking systems. The banking relationship allows Palestinian institutions to process transactions in Israeli shekels, the currency widely used in the Palestinian territories. These services are essential for paying for electricity, water, fuel, food imports, and other goods purchased from Israel. They also help transfer wages earned by thousands of Palestinians employed in Israel. According to Palestinian banking officials, five local banks that depend on Israel’s Bank Hapoalim for correspondent banking services have been told those arrangements will end on August 13. Other Palestinian banks that work through Discount Bank have reportedly been informed that their services will stop on September 1 unless a solution is reached. Israel’s Finance Ministry confirmed that both banks had announced plans to discontinue their correspondent banking services. The ministry said the decision reflects increasing legal and financial risks faced by Israeli banks while handling transactions for Palestinian institutions. In a statement, the ministry said it is holding discussions with the banks to find a way to continue these services while protecting Israel’s economic and security interests. Officials are exploring options that would allow financial cooperation to continue under conditions that reduce legal exposure for the banks involved. The banking arrangements have long depended on a government backed legal guarantee that shields Israeli banks from liability related to transactions carried out on behalf of Palestinian financial institutions. This protection is renewed every six months by the Israeli government. However, banking officials say commercial lenders no longer believe the existing guarantees provide enough protection. They argue that the risks of possible money laundering claims or allegations linked to terrorist financing have increased over time. According to one Israeli banking official, the banks believe the responsibility should now be taken over directly by the government instead of remaining with private financial institutions. Discount Bank confirmed that it had informed Israeli authorities of its concerns regarding the growing risks associated with these services. The bank said it has a responsibility to protect its depositors and shareholders while operating within an increasingly complex legal environment. Bank Hapoalim said the issue remains under review and did not provide further details. Economic experts warn that ending these banking links could have serious consequences for the Palestinian economy. Without access to correspondent banking services, businesses and individuals may be forced to rely more heavily on cash transactions. That shift could weaken the formal banking sector, reduce financial transparency, and encourage the growth of an informal economy. The decision could also place additional pressure on the Palestinian Authority, which already faces severe financial difficulties. The Authority depends heavily on local banks to finance public sector salaries and cover budget shortfalls. Financial analysts warn that if banks lose access to essential payment systems, the government’s ability to meet its financial obligations could be significantly weakened. A Palestinian businessman with close connections to the banking sector said the stability of local banks is closely tied to the stability of the Palestinian Authority. He warned that serious disruption to the banking system could have wider political and economic consequences across the West Bank. The latest development comes as the Palestinian Authority continues to struggle with reduced revenues after Israel suspended the transfer of customs and tax funds collected on its behalf. Those funds account for around two thirds of the Authority’s income, leaving its finances under increasing strain. Unless an agreement is reached soon, officials fear the planned banking cutoff could deepen the economic challenges already facing Palestinians in the occupied territory.

A severe drought across Europe has caused water levels in the Danube River to drop to record lows, exposing the remains of two World War II German soldiers and military equipment near central Budapest. The discovery was initially reported by a passerby who spotted a motorcycle handlebar protruding from rocks along the riverbank near Batthyany Square. Recovery operations conducted by the German War Graves Commission alongside Hungarian military historians unearthed a largely intact Wehrmacht motorcycle, identified as a DKW NZ 350-1 model, along with anti-tank mines that prompted a brief deployment of bomb disposal personnel. The site yielded well-preserved personal items, including intact identification tags, a wedding ring, and a Kuban shield combat decoration. Experts noted that a combination of riverbed mud and petroleum slowed the decay of the artifacts and human remains over the past eight decades. Analysis of the identification tags revealed that one soldier served in the Wehrmacht while the other belonged to the Waffen-SS. Because both halves of the soldiers’ identification tags remained intact rather than split, as was customary when casualties were processed, investigators confirmed that neither death was officially recorded during the war. The commission has initiated bone analysis and archival checks to identify the deceased before their eventual burial at the German war cemetery in Budaors.

Australian Prime Minister Anthony Albanese is facing intense political backlash after a podcast appearance triggered a high-profile diplomatic row with Tokyo. The controversy stems from an episode, recorded in July, in which Albanese discussed a pair of prized crown melons presented to him during a May bilateral meeting by Japanese Prime Minister Sanae Takaichi. During the segment, podcast host Nikki Osborne made an explicit joke comparing the fruit to female anatomy, to which Albanese responded with agreement. The exchange went largely unnoticed upon release but reignited publicly after Shingo Yamagami, Japan’s former ambassador to Australia, published a scathing opinion piece accusing the Australian leader of casually mocking a key strategic ally. Yamagami described the remarks as a sexist insult that betrayed the close diplomatic bond between the two nations, noting that crown melons are highly valued cultural gifts in Japan, often worth upwards of 30,000 yen (£150) each. Opposition leaders in Canberra immediately seized on the commentary, demanding an official apology from Albanese for what they termed “classless” and disrespectful conduct. Albanese rejected calls to apologise in parliament, insisting that the partnership between Australia and Japan remains as strong as ever and pointing out that the joke was initiated by the host rather than himself. Senior Labor Party ministers also defended the prime minister, arguing that the comments were taken out of context by political opponents and former diplomats. The episode marks the second time Albanese has faced criticism over his appearance on the show, following a prior apology for crude remarks regarding pop star Kylie Minogue.