CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 50

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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

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