Thursday, September 23, 2026 - British banks and financial institutions are being urged to avoid taking on new financial commitments linked to Israeli settlements in the occupied West Bank as the UK moves toward tighter restrictions on settlement-related trade.
Members of the all-party Britain-Palestine group of MPs have warned financial institutions to review their exposure to projects such as the planned E1 settlement, citing potential legal, sanctions and reputational risks.
The warning comes as the UK government prepares legislation aimed at restricting trade involving Israeli settlements. The government has already advised British businesses against economic and financial activity in settlements, while new measures announced in September are expected to take six to nine months to come into force.
The E1 project includes plans for thousands of new homes, with financing, insurance and guarantees required before construction can proceed.
MPs are now calling on bank boards to place settlement-related exposure on their agendas and risk registers before making new commitments.
The issue is gaining urgency as tenders connected to the E1 development move forward, putting financial institutions under growing pressure to assess whether proposed investments could create legal or financial complications once the UK's new restrictions take effect.
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