One of the largest pension asset management companies in the Netherlands has said that it divesting from five Israeli banks because they finance Jewish settlements in occupied territories.

PGGM, which reportedly manages over £125 billion in funds, issued a statement saying it would no longer work with Hapoalim, Leumi, the First National Bank of Israel, the Israel Discount Bank and the Mizrahi Tefahot Bank.

The decision is expected to cost Israel tens of millions of pounds, according to Haaretz.

A PGGM spokesperson told newspapers: "The reason for this was their involvement in financing Israeli settlements in occupied Palestinian territories. The settlements in the Palestinian territories are considered illegal under humanitarian law.”