The United Methodist Church pension fund has blacklisted five Israeli banks for investment purposes due to human rights violations. With seven million members, the United Methodist Church is one of the largest Protestant churches in the US. The board of the pension fund, which has assets worth $20.9 billion, made its announcement in its annual report.
This is the first time that such a large US church organization has imposed sanctions on Israeli financial institutions and the "New York Times" reports that the church fund believes that these banks help finance settlement construction in the West Bank.
The five Israeli banks Bank Leumi (TASE: LUMI), Bank Hapoalim (TASE: POLI), Israel Discount Bank (TASE: DSCT), Mizrahi Tefahot Bank (TASE:MZTF), and First International Bank of Israel (TASE: FTIN) are among 39 companies from a range of countries that the United Methodist Church has disqualified from investments because they do not achieve the human rights criteria set by the church. 13 other Israeli companies are on the blacklist including the Shikun u'Binui Holdings Ltd. (TASE: SKBN) construction cmpany.
BDS leaders have hailed the decision as an important victory for the movement.
Last July, the United Church of Christ with 1 million congregants called for divestment from Israeli companies that earn profits from the Palestinian territories and declared a boycott of Israeli companies operating in the West Bank.
However, not all Methodists support BDS. The United Methodist Church for Constructive Peacemaking in Israel and Palestine has denounced boycotts of Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2016
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