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Paragraphs 19 - 23.
In general we agree with the Committee, with the
India Office suggestions about auditors, and with the form of statement in Appendix D. You will no doubt consider whether loans on mortgage should be a separate item.
We feel strongly that publication of annual balance sheets should be made compulsory, and that it is worth considering whether, especially in present
circumstances, returns should not be rendered monthly. We are in favour of Ezechiel's suggestion of a whole time Inspector of Banks. An impartial official could be empowered to call on a bank for more detailed information than could properly be given to an Advisory Committee of which one or more rival bankers would be members; and though he would not communicate all his information to the Advisory Committee, he could undoubtedly help that body to work effectively.
Paragraphs 24 - 35.
We all dislike even the emergency proposal to
attempt to regulate liquidity.
Paragraph 36,
If an Inspector is appointed, the difficulty about the inclusion of bankers in the Advisory Committee will disappear.
Paragraphs 37 41.
We think that these difficulties arise out of what we regard as the too rigid minimum capital requirements. If a sliding scale is adopted, as suggested above, we think that it should certainlybe enforced in respect of existing banks, but that this need not give rise to hardship.
Paragraph 50.
I share Ezechiel's doubts as to the proposal to take power to fix maximum rates of interest on current
accounts
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