47
having regard to the fact that the number of these small
Banks is generally recognised to be excessive and that they
constitute a grave potential danger to the economic
structure of Palestine.
41. As stated in paragraph 14, however, Dr. Smoira
contends that a minimum capital of £P.10,000 paid up in
cash or in the case of Co-operative Societies "own funds"
amounting to £P.10,000 is adequate.
42.
PART TWO OF TERMS OF REFERENCE.
The Second Part of our terms of reference is
"To consider the necessity for and to make recommenda-
tions regarding the revision of -
(a)
the provisions of the Banking Ordinances,
1921/1922;
and
(b) the Credit Banks Ordinances, 1920/1922."
43. With regard to (a), apart from the amendments to
the Banking Ordinance necessitated by our recommendations in
paragraphs 14, 15, 16, 17, 18, 21, 23, 35 and 40, it will
be necessary to make provision in the Law for sanctions for
failure to comply with any provisions of the Ordinance.
We also deal below with certain other matters which were
excluded from the matters in Part I of our terms of
reference.
44. The first of these matters is the definition to
be included in the Ordinance. While it was generally
agreed that the definition should refer to the specific
nature of banking business, it was also agreed that it was
impracticable to include in the definition the whole of the
functions of a Bank. It was also agreed that any such
definition should include as a specific characteristic of a
Bank the receiving of money on deposit as well as on
current account.
45.