CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 47

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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.