Balance Sheet for Arab Bank and Arab National Bank Ltd., 1939 to 1945 in Palestine before 1948 (Nakba), British Mandate: A Survey of Palestine: Volume II - Page 559. Chapter XIV: Finance: Section 4: Banking: (d) Distribution of Deposits By Race: Table 6

CHAPTER XIV.

46. The rapid development of certain local banks during the war is noteworthy. Table 6 shows the paid-up capital, reserve funds, total deposits and total advances and bills discounted of the Arab Bank Ltd. and the Arab National Bank Ltd .. at the end of each year, commencing with the figures for the month of August, 1939. (See table 8 for separate figures in respect of each of these two banks).

Table 6.

Paid-up I Reserve Total 1 Total advances
and bills
capital funds deposits discounted
£P. £P. £P. £P.
31. 8.39 209,494 32,205 376,180 456,816
31.12.39 209,506 34,309 299,223 462,617
31.12.40 209,790 37,848 245,61D 412,064
31.12.41 209,818 38,577 632,515 499,790
31.12.42 213,634 40,859 1,330,953 992,377
31.12.43 480,508 148,971 3,430,197 2,392,268
31.12.44 1,120,000 559,731 5,067,421 3,311,176
31.10.45 1,415,752 977,877 G,970,728 5,256,214

It will be noted that the total deposits of these two banks increased from £P.376,180 in August, 1939, to £P.6,070,728 at the 31st October, 1945, This is explained by the fact that the Arab fellah, who bad enjoyed, and continues to enjoy, very high prices for his products, has not only liquidated his borrowings from moneylenders, but has accumulated substantial amounts in cash which only to a small extent have been deposited with banks anrl the remainder boarded. These favourable economic conditions and the exceptionally high dividends distributed by Arab banks have enabled them to place new shares on the market and to raise their paid-up capital from £P.209,494 at the 31st August, Hl39, to £P.1,415,752 at the 31st October, 1945, i.e. an increase of about 600%.

47. Table 7 shows the paid-up capital, reserve funds, total deposits and total advances and bills discounted of (1) Palestine Discount Bank Ltd., (2) Workers' Bank Ltd., (3) Ellern's Bank Ltd., (4) Jacob Japhet & Co. Ltd. and (5) Kupat-Am Bank Ltd., (the five Jewish local banks with the highest figures of total deposits) at the end of each year, commencing with the figures 'for the month of August, 1939 (see table 8 for details).

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