CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 38

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APPENDIX "D"

APPENDIX "E"

of some society of accountants or auditors approved as aforesaid, notwithstanding any provision in any other Ordinance regarding the conditions of appointment of Auditors.

Furthermore, unless the Law Officers of Government are of opinion that Auditors may under existing legislation be held liable for the accuracy of the accounts approved by them, we recommend that provision should be made in the Banking Ordinance making them liable for negligence in

the discharge of their duties as Auditors; and that in the case of conviction by a Court of culpable negligence against an Auditor he shall no longer be entitled to work

as an Auditor of a Bank.

22. With regard to (iii), generally speaking, the main purpose for publishing the particulars required under the Banking Ordinance is the protection of depositors by making it encumbent on Banks to disclose as far as possible

the degree of liquidity of their assets. Some of the

smaller Banks at present show in one balance under the item "Balances with other Banks" balances held for them by the leading Banks and those invested in some obscure loan

society. It was generally agreed that any schedule for

the purpose must not give less information than the

existing schedule, except in so far as the items in the

present schedule are confusing or are to-day inapplicable to Banks operating in Palestine.

23. We have, however, revised the form of the annual

Statement of Assets and Liabilities of Banks as shown in

the attached Form. We recommend that this statement should

be submitted by all local Banks to the Registrar of Companies as provided in Section 5(b) of the Banking

Ordinance, 1921. We also recommend that all foreign and

local Banks operating in Palestine should render to the

Treasurer quarterly statements in the attached form for

compilation