that in some countries the proportion is left to the
54
discretion of the Credit Banks themselves. We agree that
it would not be practicable to determine a fixed proportion
in this way generally in the case of all Companies;
but
we recommend that Credit Banks should be allowed to issue
debentures in series to a maximum of six times the paid-up
capital and reserves of the Bank. No amendment of the
Law is necessary in this respect but we bring this matter
to the notice of Government and request that administrative
instructions should be issued to this effect. Dr. Smoira
considers the maximum should be ten times the paid-up
capital and reserves.
SUMMARY OF RECOMMENDATIONS.
57. A summary of our recommendations is set out
hereunder:-
(a) Minimum Paid-up Capital -
(1)
No local Bank should be allowed to register
with a capital of less than £P.25,000 to be
fully paid up within one year from date of
incorporation; and certificate to commence
business should not be issued until capital
has been fully paid up in cash. Dr. Smoira
considers that the minimum capital should be
fixed at £P.10,000 (Paragraph 14);
(ii) Foreign Banks should have a minimum paid-up
capital of £P.100,000 (Paragraph 15);
(iii) Co-operative Credit Societies should be
treated like local Banks and "Own Funds"
regarded as capital (Paragraph 16). Should
"Own Funds" fall below the statutory minimum
they should cease to receive deposits from
non-members until the statutory minimum has
been restored and maintained for one year
(Paragraph 17);
(iv)