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Israeli settlements expand by record amount

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Report analyses financial stakes, loans by European

companies

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Growing number of financial institutions involved

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Some financial actors are also divesting, report says

By Emma Farge

GENEVA, Nov 26 (Reuters) - A growing number of European

financial institutions have a business relationship with

companies with ties to Israeli settlements, according to a study

by civil society groups on Tuesday, calling for heightened due

diligence.

Israeli settlement activity has expanded by a record amount

and some settlers hope U.S. President-elect Donald Trump will

help them fulfill a dream of imposing sovereignty over the area

seen by Palestinians as the heart of a future state.

Rising settler violence has led to U.S. sanctions and some

companies have said they would stop business in the occupied

West Bank.

In total, 822 financial institutions this year have

relationships with 58 firms "actively involved" in Israeli

settlements versus 776 in 2023, The Don't Buy into Occupation

coalition report said. They called for heightened scrutiny and,

if necessary, for divestments.

"The indication is that things are going the wrong way,"

said Andrew Preston, with Norwegian People's Aid, which is one

of the 25 European and Palestinian civil society groups which

conducted the research.

"In our view, European financial institutions should be

urgently reassessing their approach to companies involved in the

illegal occupation," he told the Geneva Press Club where the

report was presented.

Israel's finance ministry did not immediately respond to a

request for comment.

The West Bank is a kidney-shaped region about 100 km (60

miles) long and 50 km (30 miles) wide that has been at the heart

of the Israeli-Palestinian conflict since it was captured by

Israel in the 1967 Middle East war.

Most countries consider the area as occupied territory and

deem the settlements illegal under international law, a position

upheld by the U.N.'s top court in July.

Among the European firms listed were top banks including BNP

Paribas and HSBC ( HSBC ), the report said. The banks did not immediately

respond to a request for comment.

The 58 partner firms include heavy machinery maker

Caterpillar Inc. ( CAT ) and travel sites Booking.com and

Expedia ( EXPE ), according to the report. None of those

companies immediately responded to a request for comment.

Booking.com previously said it updated its guidelines to

give customers more information to make informed decisions about

disputed and conflict-affected areas. Expedia ( EXPE ) has said its

accommodations are clearly identified as Israeli settlement

located in Palestinian territory.

Many, but not all, of the 58 companies in the report are

also listed in a U.N. database of companies doing business with

Israeli settlements. Some financial firms have divested from

firms linked to Israeli settlements in recent years, the report

said, including Norway's pension fund KLP.