After the Israeli government declared the Hamas-ruled Gaza Strip a “hostile entity,” Israel’s largest bank, Hapoalim, decided to cut off all business ties with collaborators in the salient.

“In light of the decision by the government to declare the Gaza Strip a hostile entity, Bank Hapoalim has decided to end banking operations with banks and branches located in the Gaza Strip,” said a statement released by the bank Tuesday.

Following this decision, the transfer of cash to banks in Gaza will cease immediately, the same thing being expected to happen with cheques in the upcoming weeks.

Bank Hapoalim and the Israel Discount Bank were able to deal with Palestinian counterparts in Gaza and the West Bank after the Israeli-Palestinian Oslo accords were signed in 1993.

Last week, the government led by Prime Minister Ehud Olmert said Gaza is a “hostile entity” after Palestinian militants continued to launch rockets into Israeli territories on a daily basis.

Several militant groups claimed responsibility for the rocket barrages, but Hamas wasn’t among them. Even so, Jerusalem officials said the Islamic movement that rules the salient since mid-June is guilty of allowing the militants to fire rockets at Israeli settlements.

Therefore, Israel said it will cut down electricity and fuel supplies to the impoverished territory, but the drastic measures weren’t implemented yet.

After Bank Hapoalim made the announcement, Hamas criticized the measure which is “part of a general plan agreed between Israel and the United States.” The movement’s spokesman Fawzi Barhoum reiterated that the move is politically motivated and “has nothing to do with rockets attacks on Israel.”

“It is a programmed plan implemented on the Palestinians to force them to kneel,” he said.