44
banks which closed their doors were struck off the list of banks. During December, 1937, and January, 1938, 19 other banks intimated that they did not intend to continue to carry on banking business and took the necessary steps to delete the word "bank" from their nmes. Subsequently 3 more banks ceased to carry on banking business and 3 are in process of being absorbed in amalgamations with other
banks.
6.
The total number of jocal banks which have ceased to
function as banks since the enactment of the ruinance is
therefore 32. The combined figures of the main items
appearing in the statements of these banks as at the 20th
September, 1937, are as follows :-
£P.
Paid-up Capital
153,574
Deposits
160,493
Bills Discounted and
Advances
300,652
7.
These figures are illuminating. They show how
The
unimportant a part these 32 "banks" play in the financial
life of the country. The deposits belong chiefly to the
managers of the banks, their friends and relatives.
credit which these companies make available to the public has not been withdrawn as the majority of the companies are continuing business as loan institutions.
8.
In addition to deleting the word "bank" from their names, the majority of the companies which have given up
banking business have voluntarily altered their memoranda of
association so as to exclude the transaction of banking
business as one of their objects.