Aggregate Deposits by Foreign and Local banks in Palestine before 1948 (Nakba), British Mandate: A Survey of Palestine: Volume II - Page 554. Chapter XIV: Finance: Section 4: Banking: (b) Period June, 1936, to 31st August, 1939: Table 1

CHAPTER XIV.

analysis of advances and bills discounted. In October, 1987, further measures of control over banks were enacted. The Banking (Amendment and Further Provisions) Ordinance, 1937*, provided inter alia that no banking business should be transacted, except by a company having a minimum subscribed capital of £P.50,000, of which not less than £P.25 ,000 was paid up in cash. Existing companies already authorised to transact banking business. which were not complying with these requirements, were given two years in which to raise the necessary capital. Provision was also made for the appointment of an advisory committee to advise Government on banking matters.

(b) Period June, 1936, to 31st August, 1939.

37. This period is chiefly characterized by a rapid reduction in the number of local banks, a slow but a continuous rise in deposits and by the imposition of a light, but effective, control over banks. Table 1 shows the aggregate deposits held by foreign banks, local banks and credit cooperative societies at the end of each half year, from June, 1936, (the year in which banking statistics became available and were for the first time published by the Government Statistician) to June, 1939 and also at the 31st August, 1939. The distinction between foreign and local banks is merely one of place of registration. All banks operating in Palestine but having their registered office abroad are termed "foreign" banks even though in certain cases their activities are almost entirely confined to Palestine.

Table 1.

Half year I Foreign banks

ended

Local banks

Credit Cooperative societies

No. £P. %of No. £P. %ol ~P. % of £P.
ooo•, total ooo•s total OOO's total OOO's
1936
30th June 7 11,534 67 70 3,105 18 93 2,548 15 17,187
31st Dec. 6 10,963 65 68 3,233 19 93 2,790 16 16,986
1937
30th June 6 11,030 64 67 3,351 19 95 2,973 17 17,354
31st Dec. 6 10,310 63 60 3,157 19 95 2,819 18 16,286
1938
3Uth June 6 11,103 65 44 3,119 18 95 2,936 17 17,158
31st Dec. 6 11,250 62 35 3,729 21 94 3,119 17 18,098
1039
30th June 6 12,972 64 36 5,461 27 92 l,74J 9 20,174
31st Aug. 6 11,186 65 35 4,580 26 91 1,562 9 17,328 I
t will be observed that at the 30th June, 1939, foreign banks held 64% of the total deposits, local banks 27% and credit cooperative
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* Repealed and replaced by the Banking Ordinance, 1941 - Laws of 1941, Vol. I, page 85.

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