Denmark's largest bank decided to blacklist Bank Hapoalim because of its involvement in the funding of settlement construction.
Danske Bank added Bank Hapoalim to its list of companies in which the company cannot invest due to its corporate accountability rules.
In an announcement posted on its website, the bank stated that Bank Hapoalim was acting against the rules of international humanitarian law.
Israeli website Walla reported on the Danish bank's decision earlier on Saturday.
The Danish bank had already decided to pull its investments from Africa Israel Investments Ltd.