Distribution of Bank Credits By Categories, 1939 to 1945 in Palestine before 1948 (Nakba), British Mandate: A Survey of Palestine: Volume II - Page 558. Chapter XIV: Finance: Section 4: Banking: (d) Distribution of Deposits By Race: Table 5

CHAPTER XIV.

to finance their undertakings largely from the high profits realised from the sale of their products. Local banks were, therefore, compelled to seek a new outlet for investment and accordingly invested substantial amounts in British War Loan.

44. In 1944 credits granted by banks began to increase. With the cessation of hostilities in 1945, building activity showed signs of revival and war-time controls over imports were relaxed. These and other factors produced a demand for credit which at the 31st October, 1945, totaled £P.25,051,372, representing an increase of £P.ll,200,927 as compared with the corresponding figure in August, 1939. This increase in total credit is not excessive when it is related lo the rise in the index of wholesale prices from 92.8 at the 31st August, 1939, to 332.9 at the 31st October, 1945.

45. Table 5 shows the distribution of bank credit by categories as at the 30th September, 1939 and 30th September, 1945.

Table 5.
----
30th September, 1939 I 30th September, 1945
Foreign and local banks Foreign and local banks
Category
£P Per cent £P Per cent
• of total • of total
.Municipalities, local I
councils, village authorities, and public
utility bodies I 527,930 4.49 401,714 1.97
Agriculture I 2,7~~.388 22.99 8,703,492 18.15
Industry l,3oG,475 11.36 4,577,611 22.44
Construction of
buildings I 419,270 3.56 926,108 4.54
General commerce; I
(wholesale and retail
merchants) 12,019,087 17.1615,747,08~ 28.17
Professional and
private individuals 1,218,682 10.36 1,666.940 8.17
Purchase of land 716,631 6.08 509,117 2.49
Financial concerns
including insurance
companies, banks, etc. 1,153,858 9.81 878,713 4.31
Buildings;
(mortgages) 769,138 6.54 360,862 1.77
Miscellaneous 899,980 7.65 1,680,781 7.99
--- ---
Total 11,762,989 100.00 20,401,873 100.00
558