Deposits Held By Banks, 1939 to 1945 in Palestine before 1948 (Nakba), British Mandate: A Survey of Palestine: Volume II - Page 556. Chapter XIV: Finance: Section 4: Banking: (c) The Period of The War, 1939 to 1945: Table 3:

CHAPTER XIV.

so that by the end of the war the number of commercial banks bad dropped to 25, comprising 5 foreign and 20 local, representing a reduction of 52 banks during the years 1936-1945. The violent fluctuations in the level of deposits during the first two years of the war imposed a severe strain on the banking structure. Ranks were compelled to curtail their !endings in order to increase their depleted cash reserves, and currency which had been hoarded by the public returned only very slowly to the banks.

40. In July, 1941, however, total deposits held by banks and credit cooperative societies commenced lo rise and this trend has been maintained. Table 3 shows the deposits held by banks and credit cooperative societies at the end of each half year, commencing with the figures for the month of September, 1939.

Table 3.

Ff~~d~~ar J Foreign banks I Local banks I Credfj, 000""""'" I Total
socu~hea
I
No. LP. %of No. r ..* P. %of No. LP. %of I LP.
total totn.l total
1939
30th Sept. 6 10.385,335 66.87 35 9,850,128 24.79 00 1,296,IGS 8.94 15,581,626
Slst Dec. 6 ll,635,2lN. 71.83 as 3,417.652 21.10 89 1,145,974 7.07 16,198,860
1940
30th June 5 n.eu.aea 78.19 29 2.360,891 10.03 es 850,199 e.te 14,722,918
Slst Dec, ' 12,483,2fl.I 79.27 29 2,411,297 15.Sl 85 858,960 5.42 lfl,748,551
194.i
SOth June ' 12,998,979 79.78 27 2,416,847 14.82 as 887,816 5.45 16,302,542
Slst Dec. 5 17,289,699 7!).65 es 3,002,023 15.49 ss 1,056,298 *.86 21,708,020
1!)42
SOth June 5 19,200,233 80.10 es 3.514,760 14.66 85 1,257,052 5.24 28,972,045
31st Dec. s 24,437,194 77.40 " 5,801,7!H 16.79 as 1,834,561 5.81 31,573,486
1943 I
!IOth June 5 30,505,105 74.01 ea 7,941,114 19.27 es 2,768,4!11 6.72 41,214.650
Slst. Dec. 5 39,006,080 72. 75 " 10,669,200 19.90 SJ 8,940,838 7.35 53,616,208
1944
30th June 5 49.007,219 71.76 20 12,066,719 19.86 ** 5,093,816 8.98160,767,742
Slst Dec. 5 49,959,073 70.23 20 14,720,554 20.69 ** 6,~55,858 D.08 71,UJS,485
1945
BOth June 5 52,079,648 67.92 20 17,71i6,773 22.95 83 7,525,519 0.78 77,361,940
3lin Oct. ' 57,288,729 67.43 20 19JIBO,J64 22.75 83 8,943,58\) 9.82 84,962,476
The phenomenal rise in deposits illustrated in this table may be attributed to the following principal factors :-

(a) Expenditure by the military authorities in Palestine which began to make itself felt sometime towards the end of 1941. (b) Imports of Jewish capital during the period 1940-1944 which is estimated to amount to £P.38,000,000.

(c) Realisation of stocks which could not be replaced in view of the restrictions on imports.

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