50
48. We feel, however, that it would be unreasonable
to preclude such a Bank as the Central Bank of Co-operative
Institutions or the General Mortgage Bank from calling
themselves Banks and that although in English practice the
word "Bank" has acquired the meaning of "deposit-bank" in
the evolution of banking practice on the continent of Europe
institutions undertaking the functions of Mortgage Banks
or Central Co-operative Banks were described as "Banks".
It was further pointed out that unless these Banks accepted
deposits from the public for fixed periods or on current
account there is no necessity to recommend that they be
registered under the Banking Ordinance. These arguments
appear to us to be reasonable in view of the antecedent
and affiliations of the institutions concerned.
49. Nevertheless we feel that there should be some
restriction on the use of the word "Bank" and we further
think that such titles as "National" and other titles of a
grandiose and misleading nature for Banks should be expressly
forbidden in the Banking Ordinance on the lines of
Section 9 of the Partnership Ordinance and Section 22 of the
Companies Ordinance, as under:-
(a) No Bank shall be registered with a name including
the word "Royal" or "Imperial" or "National" or
any other name suggesting the patronage of His
Majesty, of any Member of the Royal Family, of the
High Commissioner, or any connection with the
Government;
(b) No Company or Co-operative Society shall be
registered with a name including the words "Bank"
or "Banking" or any derivatives thereof without
the previous consent of the High Commissioner.
50. We also considered the question of rates of
interest offered to depositors.
The
Page 50Page 51