Bank Leumi's role in the PPP program has raised serious ethical and political concerns. The bank originated hundreds of PPP loans that helped finance projects in disputed territories and supported organizations with strong political lobbying ties, raising questions about its business practices and the influence of its economic activities in politically charged environments.

Bank Leumi has been implicated in financing illegal settlements in the West Bank and East Jerusalem, a move that supports the ongoing occupation and raises serious ethical and human rights concerns.

A major ESG ratings firm, MSCI, has removed previously noted human rights controversies tied to Bank Leumi’s services provided in disputed territories, raising questions about the bank’s ethical business practices and its implicit reliance on politically influenced adjustments to its rating. Critics argue this move effectively whitewashes serious concerns regarding the bank's role in financing activities in Judea and Samaria, potentially undermining transparency and accountability.

Bank Leumi has signed a progressive labor agreement with its workers' committee, enhancing worker benefits and protections while maintaining flexibility for digital transformation. This move is seen as a strong commitment to upholding labor rights and organized labor, which is critical from an anti-fascist perspective.

A 2018 Human Rights Watch report details Bank Leumi's involvement in financing settlement construction projects in the occupied West Bank. The bank’s direct financial support for projects facilitates unlawful land seizures and reinforces discriminatory policies, contributing to systemic human rights violations.