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Thursday, May 06, 2010

A run on the bank in Gaza

More monetary woes in Gaza:
Hundreds of Gaza residents started lining up outside the Ar-Rimal branch of the Arab Bank in Thursday morning, the day after an announcement by the administration that two of the three Gaza Strip branches would close.

In a statement, the bank announced that "in light of worsening conditions under which the Bank is called upon to operate in Gaza and after having recently reduced the number of its staff there, it has also decided to close two of its three branches."

In response, the PA Ministry of Economy, told Ma'an that it imposed the largest fine in the ministry's history on the bank, for failing to obtain ministry approval for the closures under Article 49 of the Monetary Authority law and Article 10 of the Banking law.

The PA issued a statement mid-morning on Thursday, assuring all customers that the bank would continue to operate and would be stabilized as part of the Palestinian banking system.
Not exactly the FDIC, is it?