During this period the banking sector consisted of three main groups: the deposit banks; the discount houses; and the accepting houses, overseas banks and other banks. In the first part of this article the role and functions of these component parts of the sector are briefly described, with the intention of indicating which factors were of importance in shaping their development. There follows a chronological review of the evolution of the sector. The period under consideration is divided, for purposes of analysis, into three parts. The first, running from 1952 to 1957, is characterised by relatively slow institutional and financial development. The second, from 1958 to 1960, is a period which contains important structural changes associated with rapid growth. In the final period, from 1961 to 1967, the rapid development of the third group (the accepting houses, overseas banks and other banks) was the feature of greatest significance.