In October 2024, the Delas Center for Peace Studies issued a report entitled: “The Armed Bank and its Shared Responsibility in the Gaza Genocide: Financing the Companies That Manufacture the Weapons Used in Massacres against the Palestinian Population,” a Spanish center that focuses in its report on the role of banks in financing Companies that manufacture weapons used in Israeli military operations in Gaza.
The report was prepared by a team of researchers and is based on data from the Stockholm International Peace Research Institute (SIPRI) and other sources. The report analyzes 3,606 financial transactions related to arms manufacturing companies and the banks that finance them. It identifies 12 Spanish financial institutions, including Santander and BBVA, as major financiers of these arms manufacturers.
The report’s authors said that they obtained the financial data through cooperation with entities specialized in collecting and analyzing financial data, such as Profundo, and using financial databases such as Bloomberg and Refinitiv Eikon. The data was updated in August 2023 and June 2024.
This report highlights the unethical relationship between banks and arms companies, emphasizing the responsibility of financial institutions for the systematic crimes against humanity committed by Israel in Gaza, which experts and the International Court of Justice classify as genocide.
The report also includes topics documenting arms exports to Israel over the past decade. It reviews the role of financial institutions, especially Spanish banks and some international banks, in financing arms manufacturing companies and the impact of this on Gaza in terms of horrific human and material losses there. It examines the legal and ethical implications of these financial policies, and urges banks to stop operations linked to war crimes and genocide.
This report was prepared within the framework of the project: “From Armed Banking to Ethical Banking… Disarmament Starts Here (Phase 2)”, funded by Barcelona City Council.
The 54-page report includes detailed tables showing the extent of the involvement of several countries and international banks in arming Israel and financing its military operations that affected civilians in Gaza and Lebanon.
For example, one of the tables displays arms exports to Israel during the past ten years (2014-2023), in a way that reveals their size and types and the amount of international involvement in this context. A second table lists examples of the use of these weapons in Israeli attacks on Gaza, identifies the companies that manufactured them, and the banks that financed these companies, which shows the vital role that these institutions play in supporting armed conflicts. Another table ranks the top 100 international banks involved in financing the armament of this conflict, which helps in understanding the intertwined financial dimensions that contribute to the increase in genocide crimes in Gaza.
The concept of “arming bank”
The report provides a comprehensive overview of the concept of the “armed bank,” a term used to describe financial institutions and banks that finance companies that manufacture weapons used in armed conflicts. The report reviews the history of this financing since 2008, explaining how banks are not just financial intermediaries, but also indirectly participate in fueling wars by supporting military industries.
The report indicates that this type of financing, although legal in most countries, faces increasing criticism from civil society organizations and international human rights organizations. Because of its role in continuing violent conflicts.
Arming Israel and the role of major powers
According to the report, the United States is considered the main arms supplier to Israel, as its exports include F-16 and F-35 aircraft and precision missiles such as the GBU-39, which are used in air attacks on residential areas in Gaza. Other countries such as Germany and Italy also play an important role in supplying Israel with armored vehicles, defense systems, and military aircraft, which contributes to the high number of civilian casualties; As a result of the use of these weapons in attacks on civilian areas.
The impact of the funded weapons on the residents of Gaza
The report examines the impact of exported weapons on civilians in Gaza, noting their use in air attacks targeting schools, hospitals and residential areas. The report provides detailed examples of the use of F-35 warplanes and GBU-39 missiles, which mostly hit civilians despite claiming to target military targets.
One of the most prominent documented examples is the attack on the Shujaiya neighborhood in Gaza, which resulted in the killing of more than 70 civilians and the destruction of dozens of homes. The report also notes that air attacks are not the only means of using bank-financed weapons, as M109 Howitzer cannons funded by Santander Bank are also being used to destroy critical infrastructure.
One of its sections of the report focuses on the financing provided by international banks to companies that manufacture weapons used in the Israeli war on Gaza. The report shows the involvement of Spanish banks BBVA and Santander in financing companies such as Boeing, Raytheon and Rene Metall, which produce the warplanes and heavy artillery used in the attacks on Gaza.
He also points out that BBVA Bank provided financing of more than $1.3 billion to Boeing, while Santander Bank provided financing worth $933 million to the same company, which contributed to the development of the F-15 and F-35 aircraft that were used in Israeli military operations. .
The report documents major arms exports to Israel over the past decade, using data from the Stockholm International Peace Research Institute (SIPRI) and other sources. It identifies 15 major arms manufacturers supplying Israel, including Boeing, General Dynamics, and Lockheed Martin.
Other Spanish banks, such as Caixa and Santander, financed companies that exported GBU bombs used by the Israeli army, resulting in significant civilian casualties.
Israeli occupation army operations in Gaza, including the use of these weapons, resulted in widespread destruction and civilian casualties. Reports indicate that the Israeli occupation army released approximately 70,000 tons of explosives, causing the death and injury of more than 150,000 Palestinians, as well as widespread damage to infrastructure, including universities, hospitals, and agricultural lands. Military occupation operations also led to the displacement of 90% of Gaza’s population at least once.
Banks’ motives for making these deadly deals
But what drives these banks to make such deadly deals?
The South African government filed a lawsuit against Israel with the International Court of Justice on December 29, 2023, accusing it of committing genocide in Gaza. Other countries later joined, and the case was accepted in form and is still pending before the court’s judges.
Many reports issued by UN or international organizations documented war crimes and genocide, in addition to the ICC prosecutor requesting permission from the Pre-Trial Chamber judges to arrest Israeli leaders, including Netanyahu, accusing them of committing war crimes, which means that horrific crimes have been committed. And still. However, the banks did not take these data seriously, but rather concluded financial deals.
Banks seek to facilitate the financial operations of weapons manufacturing companies, which may contribute to confirmed war crimes and genocide crimes, for several reasons, including achieving financial profit in the first place, as these institutions achieve huge profits by providing loans and purchasing shares in weapons companies, which enhances their financial returns. Also, resulting from the network of trade and investment relationships that contribute to strengthening the banks’ position in the markets and expanding their investment opportunities.
The lack of transparency and lack of legal accountability create an environment that allows banks to continue financing these companies without facing significant legal or ethical repercussions.
Above all, military and strategic cooperation between Israel and many Western countries, as is the case between the United States and Israel, contributes to strengthening the role of banks in financing these arms companies.
Report recommendations
The report proposes a set of recommendations to limit the impact of bank financing in supporting the war of extermination in Gaza, including imposing a ban on financing companies that manufacture the weapons used. It also calls for the opening of international investigations to impose sanctions on the banks involved in financing these companies, including imposing financial fines and restrictions. on its activities. Furthermore, the report encourages financial institutions to adopt ethical investment policies focused on financing sustainable industries that contribute to human development and peace.
However, the recommendations of this report face several challenges linked to financial greed and political interests of states at the expense of values, ethics and human rights. Implementing these policies requires strong political will and international cooperation, and may be met with resistance from banks who believe that these measures may negatively affect their profits.
Achieving the required transparency in financial activities is a major challenge, especially in light of the presence of legal gaps that allow continued financing of military industries without adequate oversight.
Therefore, public awareness and media mobilization – whether digital or physical – about how their money is used to support military activities – may contribute to modifying the behavior of these banks.
The opinions expressed in the article do not necessarily reflect the editorial position of Al Jazeera Network.
