CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 4

helf feeling that it

السلمي مان

however love the

the

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condooma Committee may be, the banks anilted a besumably expecially

Icable to descoteo

4

constituted outside the Colony and carrying on business

therein, are required to comply with the provisions

I cannot of Part 11 of the principal Ordinance. As such,

Much the same problem exists in Palestine,

Where small Savings Banks with insufficient paid up

capital and too small a proportion of liquid assets

elevant

are also a danger to the general course of trade and industry. The papers are still required for action

in the Department, but a copy of the most important

documents which are of general, as distinct from local,

interest are enclosed in 53671/35, and I attach also

the draft Banking Ordinance enclosed in the Palestine

Gazette No.570 of the 6th of February, 1936.

It will be seen that the present Ordinance

follows the suggestions contained in those papers in

many respects. It is, however, considerably more

detailed in its provisions than the Palestine draft

Ordinance.

The Palestine Committee of Enquiry submitted

proposals that:-

1) that the High Commissioner should be given

powers to determine the extent and liquidity of assets

to be maintained by local banks and also to fix the

maximum rate of interest served by banks to depositors.

Both Sir Percy Ezechiel and the Treasury in their

comments on the report disliked these proposals and

considered them impracticable. The Hong Kong

Committee apparently agreed and the present Ordinance

has no such provisions.

2) that a minimum paid up capital should be

prescribed by Ordinance.

The India Office and the Treasury agreed on

the