Dutch pension fund disinvests millions from Israeli banks, and for the right reasons
Dutch pension fund asset manager PGGM has stopped investing in five Israeli banks because they are financing construction activities in Jewish settlements over the green line and have branches in the West Bank. PGGM is withdrawing on the basis of UN resolutions which have defined these settlements as illegal.
PGGM, which invests on behalf of the Dutch health service pension fund, has invested tens of millions of euros in Bank Hapoalim (TASE: POLI), Bank Leumi (TASE: LUMI), Israel Discount Bank (TASE: DSCT), Mizrahi Tefahot Bank (TASE:MZTF), and First International Bank of Israel (TASE: FTIN).
The banks informed PGGM that Israeli law forbade them from not providing services in the West Bank settlements.
- Need some space? UAE's banking sector is getting too crowded
- Bank funding in the Middle East doesn't boil down to liquidity alone
- Why is the Israeli shekel so weak?
- What doesn't kill you, makes your stronger: why the Arab Bank is likely to emerge from the Israeli lawsuit 'unscathed with flying colors'
- Too foreign? An inside look into the struggles of foreign banks in Saudi Arabia