The Israeli banks started to take procedures to stop dealing with Palestinian banks after the Hamas movement formed the Palestinian government, the Israeli Radio reported. 

Discount Bank in Israeli informed the Palestinian banks that it will halt all banking services with them in three to six months. The Israeli Hapoaalim Bank had taken the same decision a month earlier.
Representatives of Israeli banks said that they had no other option because of the International Laws that prohibited offering services to those who are suspected of having what was described as "terrorist activities",  adding that if they did not such a procedure then they will be legally questioned.
In an attempt to solve the problem both of The Israeli banks of Discount and Hapoaalim held meetings with the Israeli Ministery of finance and the Israel bank but these meetings were unfruitful.

Both banks used to provide ten Palestinian banks with services including wiring money in accordance with the Paris accords signed with Palestinian Authourity.

Head of the Israeli independent employers, Zeef Fire described the banks decision to stop providing sservices to the Palestinian banks as a strong strike to the Israeli companies and economic projects indicating that the Israeli business men will not be able receive their checks from their Palestinian counterparts.
Isreal Radio reported that a joint committee including Israel bank, Israeli Ministry of finance and the Authority of Money Laundry are working to solve this problem.
During the weekly cabinet meeting on Tuesday Palestinian Prime Minister Ismail Haniyya had called for the Arab banks to transfer the money to relief financial crisis of the employees who did not receive their paychecks for the last two months. Haniyya said that his government succeeded in collecting the money to pay for the employees, but due to the sanctions the money was blocked.