CO129-567-10 Companies Amendment Ordinance- draft bill 15-9-1938 - 28-9-1938 — Page 44

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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credit which these companies make available to the public has not been withdrawn as the majority of the companies are continuing business as loan institutions.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.