7
business.
The India Office considered that as
far as India was concerned it was recognized
as hopeless to try to define banking or to
restrict the use of the word "banking", and
proposed that a Bankers' Association should be
established.
in section 2)
The present Ordinance provides
that no company shall be registered by a name
which contains the word "bank" or "banking"
without the consent of the Governor.
6) that banks should not mention in their
letter paper their authorised capital without
Amelut Of mentioning the paid up capital.
This is pro-
vided for by Sections 3 and 5 of the present
Ordinance.
Section 354 (1) follows the India
Office suggestion as to the amount of authorised
apitał which must be bona fide paid up in eash
Section 363, that when a company con-
ducts any other business in addition to savings
bank business its accounts relating to the
savings bank business shall be kept in separate
and distinct books of account, is to provide
against the practice, mentioned in (1) on 53671/35, of merging the assets of savings banks
in the general assets of the parent institution,
which is apparently a universal practice in
Hong Kong and is followed even by the Hong Kong
and Shanghai Bank.
It will be seen that the Ordinance
follows the result of the discussions on banking
in Palestine fairly closely, though it has added
to the proposals considerably, particularly in the
regulation for the deposit of securities with
Colonial