The main aim of the research is to investigate the effect of foreign banks upon the Palestinian national banks through six dimensions, besides, investigating the differences through these dimensions. To do so, 50questionnaires were distributed through branches of national and foreign banks, 48 questionnaires were analyzed using (Repeat MANOVA). The result of analysis emphasize the high mean the increasing of banking awareness, where as the least mean the support of Palestinian Monetary Authority for the Palestinian national banks. Upon that it will be recommended of some points that will help Palestinian national banks to be competitive against the foreign ones.