Total Credit Granted And Outstanding Bills of Foreign and Local Banks in Palestine before 1948 (Nakba), British Mandate: A Survey of Palestine: Volume II - Page 555. Chapter XIV: Finance: Section 4: Banking: (b) Period June, 1936, to 31st August, 1939: Table 2: (c) The Period of The War, between the years of 1939 to 1945

CHAPTER XIV.

societies 9%. In August, 1939, as a result of the nervousness which prevailed immediately prior to the outbreak of war there were heavy withdrawals from banks and total deposits dropped to £P .17 ,327 ,568.

38. Table 2 shows the total credit granted and outstanding (bills discounted and advances) of foreign banks, local banks and credit cooperative societies at the end of each half year from June, 1936 and also at 31st August, 1939.

Table 2.

H:~~:;*r I Foreign banks I Local banks

Credit cooperative societies

Total

£P. % of £P. % of £P. % of £P-.-
1936 total total total
30th June 5,340,431 42.7 3,995,263 31.9 3,182,044 25.4 12,517,738
31st Dec. 5,924,649 44.4 4,217,447 31.6 3,209,311 24.0 13,351,407
1937
30lh June 5,819,004 43.9 4,003,353 30.3 3,416,152 25.8 13,238,509
31st Dec. 6,710,485 47.9 3,870,045 27.7 3,405,619 24.4 13,986,149
1938
30th June 5,928,209 45.0 3,807,333 28.9 3,426,913 26.l 13,162,455
31st Dec. 6,537,577 46.4 4,129,880 29.3 3,412,070 24.3 14,079,527
1939
30th June 5, 705, 176 ~41.2 5,966, 783 43.0 2,182,496 15.8 13,854,455
31st Aug. 5,946,115 :42.9 5,722,207 4US 2,182,123 15.8 13,850,445
It will be seen from this table that at the 30th June, 1939, total credit granted by foreign banks represented 41.2% of the total credit granted by banks and credit cooperative societies, whereas local banks granted 43% and credit cooperative societies 15.8% of total credit.

( c) The period o! the war ( 1939 to 1945).

39. From the outbreak of war in September, 1939, till about the end of 1941, the banking situation was dominated by war events. Such events as the German-Polish crisis in August, 1939, the outbreak of hostilities in September, 193(), the German invasion of Holland and Belgium in May, 1940, and the entry of Italy into the war in June, 1940, had serious repercussions on the Palestine banking system. As a result of heavy withdrawals of deposits a number of local banks were unable to stand the strain and bad ultimately to go into liquidation, and certain local hanks were unable to comply with the capital provisions of the Banking (Amendment and Further Provisions) Ordinance, 1937, and were ordered to cease to function as banks. The total number of commercial banks operating in Palestine was thus gradually reduced,

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