CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 49

provisions of the existing Ordinance in this respect.

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Dr. Smoira thought provision should be made for partnerships

to operate as Banks but as the need for permitting partner-

ships to conduct banking business has not become apparent

and as the disadvantages of the present situation in which

partnerships are not permitted to do so are not apparent,

we do not consider it within the scope of our present task

to make recommendations on the matter.

47. We feel generally that the larger Co-operative

Banks and Societies, which largely function on deposits from

non-members are in this respect not different from

commercial Banks and should therefore be subject to the

restrictions of the Banking Ordinance, although we agree

that the smaller societies which are mainly of the nature

of village and small urban thrift societies should be left

to the general supervision of the Registrar of Co-operative

Societies; but even so we think that it is most

undesirable that such societies which are not subject to the

restrictions of the Banking Ordinance should be permitted

to call themselves Banks. We, therefore, recommend that

Co-operative Societies which receive deposits from non-

members exceeding a total of £P. 10,000, or such other

maximum as may be determined by Order of the High

Commissioner, and Societies which are called Banks shall

be subject to the restrictions of the Banking Ordinance.

We also think that provision should be made in the Ordinance

to the effect that Co-operative Societies holding deposits

from non-members in excess of the approved limit which do

not register under the Banking Ordinance should, within a

period of twelve months from the date of the Ordinance,

reduce the amount of such deposits to the limit so fixed

provided that the Registrar of Co-operative Societies may

at his discretion extend the period in suitable cases by a

further period not exceeding twelve months.

48.