Palestine consumer loan facilities decline by 5%

Banking data indicates a 5% decline in consumer loan facilities in Palestine, falling to approximately $1.3 billion by the end of the second quarter of 2026, compared to $1.4 billion at the end of 2025.

In contrast to the decline in consumer lending, credit facilities for the industry and mining sector rose to roughly $696 million by the end of Q2 2026, up from $662 million at the end of 2025. Facilities for the agriculture and livestock sector remained stable at $178 million.

Economic analysts suggest that the shift in lending is driven by client needs, repayment capacity, and risk levels rather than bank preference. Challenges for productive sectors include economic instability, movement and trade restrictions, rising production costs, and difficulty accessing markets.