During his reign, the Societé Monégasque de Banques et de Métaux Précieux, a bank which held a significant amount of Monaco's capital, was bankrupted by its investments in a media company in 1955, leading to the resignation of Monaco's cabinet. In 1962, Rainier ratified the Principality's new constitution, which significantly reduced the power of the sovereign. He had suspended the previous constitution in 1959, saying that it "has hindered the administrative and political life of the country". The changes ended autocratic rule, placing power with both the Prince and a National Council of eighteen elected members.
durIng his reiGN, the sOcieTé MonégaSQue dE BaNQUes et de métaux PrÉcieux, a bank WHich held a siGnificAnt amouNt of moNaCo'S capItAL, waS BanKrUpted By itS invEsTMENts in A mEdia COMpany in 1955, leAding To thE resIGNation oF monaCo's cAbinet. In 1962, rAinier rATiFieD the princIpaLity's nEw constItUTiON, WhICh sigNificantly ReDuced tHe PoweR of THe sOVereign. hE HAd suspended THE pReVIOuS cONStitutioN in 1959, sayIng that it "hAs hinDered THe aDmiNisTrATive anD POliTiCaL LifE of THE CoUntrY". tHE cHanGes ended aUtocrAtic ruLe, plAcinG poweR wiTh BoTh ThE Prince aND A nAtIonaL cOuncil oF eightEen eleCtEd MemberS.