Palestinians in Gaza say bank account closures cut off access to vital funds

By Fayha Shalash in Ramallah, occupied West Bank via Middle Eastern Eye

Published date: 20 June 2026 09:05 BST 

Palestinians in war-ravaged Gaza have accused the Bank of Palestine of freezing or closing their accounts without adequate explanation, leaving them unable to access salaries, aid and personal savings.

Several account holders told Middle East Eye they were unable to access funds needed to pay rent, buy essentials and support their families after discovering their accounts had been restricted or shut down.

They said they received little or no explanation from the bank and were given no clear pathway to challenge the decisions.

Due to the chronic liquidity shortage in Gaza and widespread deterioration of banknotes, many Palestinians rely heavily on banking applications and digital wallets to access and transfer money.

Ahmed Sardah told MEE that he was trying to transfer money through the bank's mobile application when he discovered his account had been closed. He later learned that his PalPay and Jawwal Pay wallets had also been suspended.

Believing it was a technical error, Sardah contacted the Bank of Palestine. He said an employee informed him that his account had been "reserved by management".

Sardah said the bank gave no warning before closing the account and rejected claims that it had exceeded transfer limits.

"Unfortunately, we are living in a war of destruction and constant bombardment, and on top of that, we are being strangled," he told MEE.

'We are living in a war of destruction and constant bombardment, and on top of that, we are being strangled'

- Ahmed Sardah, Gaza resident

"My life has completely stopped; I can't even pay the rent, and I have monthly obligations. How am I supposed to meet them?"

Sardah said the bank gave no warning before closing the account and rejected claims that it had exceeded transfer limits.

Taghreed al-Daya lost her husband, four daughters and son in an Israeli air strike that targeted their apartment in Gaza City's al-Sabra neighbourhood in July 2024.

Her eldest daughter, Raghad Banat, had an active account at the Bank of Palestine where she received her monthly salary. According to Daya, the account was closed immediately after her daughter's death certificate was issued.

Daya said she completed the required inheritance procedures and obtained the necessary documents, but was told she would have to travel to Ramallah to continue the process, something she described as impossible from Gaza.

"I'm in Gaza. How am I supposed to get to Ramallah?" she told MEE. This is an impossible request."

Lawyers join criticism

On 12 February, a group of lawyers in Gaza staged a protest against what they described as the Bank of Palestine's freezing of accounts without legal justification.

The Palestinian Bar Association in Gaza later condemned the move, describing it as "dangerous and unjustified" and warning that it threatened families already struggling under the humanitarian conditions created by Israel's war on Gaza.

In a statement, the association said it had received complaints from lawyers whose accounts had been closed without prior notice.

It said around 700 lawyers in Gaza had been affected as part of a wider group of nearly 2,000 suspended accounts.

The association said account holders received differing explanations, including requests to update customer information and allegations of "unfair use".

Rami Abdo, the head of the Euro-Mediterranean Human Rights Monitor, accused the Bank of Palestine of periodically closing accounts based on recommendations transmitted through the Palestinian Monetary Authority and through internal risk-assessment procedures.

"The Bank of Palestine is exacerbating the problem by preventing citizens from challenging decisions, withdrawing funds or obtaining proof of compliance with regulations," he told MEE.

According to Abdo, account closures occur regularly and can affect hundreds of accounts at a time.

The number of bank accounts in the Palestinian territories exceeds five million, according to the Association of Banks in Palestine.

Abdo alleged that accounts belonging to Palestinians killed during the war were closed after notification of their deaths, leaving families unable to access funds despite completing inheritance procedures.

"As soon as a martyr's name is received, the bank checks if he has an account and closes it," he said.

Bank rejects allegations

A source at the Bank of Palestine dismissed claims that thousands of accounts in Gaza had been frozen, describing them as false and baseless.

The source said that any action involving customer accounts is carried out in accordance with laws, regulations and instructions issued by the relevant authorities, and that no measures are taken arbitrarily or outside established legal and regulatory frameworks.

"Since its establishment, the Bank of Palestine has been proud of its national and economic role in serving Palestinians wherever they reside, especially the residents of the Gaza Strip," the source said.

'Since its establishment, the Bank of Palestine has been proud of its national and economic role in serving Palestinians wherever they reside, especially the residents of the Gaza Strip'

 - Source, Bank of Palestine

"The bank continues to play its vital role in providing banking and financial services, enabling citizens and institutions to manage their financial affairs despite the exceptional circumstances and significant challenges facing the Strip," they added.

The source also noted that the bank continues to provide banking and financial services in Gaza despite the challenges posed by the war and currently serves more than one million customers.

Responding to allegations concerning the accounts of deceased Palestinians, the source said such cases are handled according to legal inheritance procedures and judicial rulings designed to protect heirs' rights and prevent unlawful access to funds.

The procedures apply equally in Gaza and the West Bank and are not linked to any exceptional circumstances, the source added.

MEE reached out to the Palestinian Monetary Authority for comment but did not receive a response by the time of publication.

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Caption: A Palestinian street vendor sells bread at a market in Jabalia in the northern Gaza Strip, on 27 February 2025 (Omar al-Qattaa/AFP)

Gaza Plunged Into Darkness: 85% of Electricity Network Destroyed

 June 22, 2026

Gaza Herald – Gaza’s electricity sector has suffered catastrophic destruction during the ongoing Israeli war on Gaza, with 85% of the territory’s power distribution network damaged or destroyed and more than 3.2 billion kilowatt-hours of electricity denied to the population since October 2023, according to officials from Gaza’s electricity distribution company.

Mohammad Thabet, spokesperson for the Gaza Electricity Distribution Company, revealed that restoring the sector to its pre-war condition would require approximately $1.5 billion, describing the devastation as one of the most severe blows to Gaza’s already fragile infrastructure.

The Israeli attacks have destroyed 85% of power distribution networks, 90% of company warehouses, and 75% of operational facilities and branch offices across the Strip. More than 5,100 kilometers of electrical lines have been damaged, while initial losses are estimated at $977 million, a figure expected to rise as large areas remain inaccessible due to ongoing Israeli attacks.

Before the war, Gaza relied on electricity supplied through Israeli power lines and its sole power plant, providing around 180 megawatts combined. Today, the territory has been left without any stable source of electricity, forcing hospitals, water facilities, municipalities, and humanitarian institutions to depend on limited generators and shrinking fuel supplies.

The human toll has also been significant. According to Thabet, 48 electricity company employees, engineers, and technicians have been killed, nearly 100 others injured, and more than 50 contracted workers have lost their lives during the genocide.

Officials warn that rebuilding Gaza’s electricity system could take three to five years, even if reconstruction materials are allowed to enter immediately. The sector requires thousands of utility poles, hundreds of kilometers of power cables, transformers, heavy equipment, and specialized machinery to restore even basic services.

As Gaza remains trapped under blockade and critical infrastructure continues to deteriorate, electricity shortages are threatening every aspect of civilian life, from healthcare and water production to education, communications, and economic recovery, deepening the unprecedented humanitarian crisis.

Water Fact--June 21, 2026

Water is life, and there is little of it in Gaza

Palestinians in the devastated Gaza Strip who survived the winter floods sweeping through tented encampments that caused babies to die of hypothermia must now endure the blistering heat of summer without sufficient water to sustain health and life itself.  

According to the UN, 7.5 liters of water per person per day is the absolute baseline for survival, while 15 – 20 liters per person is the recommended amount for drinking, washing and hygiene.   In Gaza, the Coastal Municipal Water Utility (CMWU) aided by the International Committee of the Red Cross is struggling to make 6 liters per day per person available for much of the population.  

Since 2016, the ‘Water Facts’ produced by the Alliance for Water Justice in Palestine have documented the severe water crisis facing the Gaza Strip.  That crisis has now turned deadly.  The CMWU reports that given the destruction of desalination plants and pipelines, and Israel’s refusal to allow the entry of materials to fix the smashed infrastructure as well as the fuel needed to run water storage and distribution networks, Gaza only has 40% of the amount of clean water that had been produced before October 2023.  Many Palestinians are forced to rely on water from damaged and polluted wells and other contaminated sources.  

In its report for June 12, 2026, OCHA states that over 70% of Gaza’s population relies on trucked water, but Israel’s restrictions and funding shortfalls “are putting this supply at risk.”  Four humanitarian agencies are now phasing out their trucking operations “leaving over 330,000 people across approximately 250 sites at risk of losing their primary drinking source.”

The acute water shortage, open sewage flowing among he tents and the refusal of Israel to permit the entry of machinery necessary to clear Gaza’s mountains of garbage and rubble have led to an escalation of water-borne diseases such as gastroenteritis and severe diarrhoea, causing dangerous dehydration.  A collapsing health care system that lacks basic medications, intravenous fluids, laboratory supplies and even sufficient clean water for handwashing is not able to cope with the urgent physical needs.  

In the words of one Gaza resident, “We are not afraid only of bombs or starvation.  We are now afraid of the food we eat and the water we drink.”