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APPENDIX.
9.
On the termination of the first period of grace
allowed by section 4 of the Ordinance the position is
that the number of banks has been reduced to 42 of which
6 are foreign and 36 are local bunks. A summary of the
assets and liabilities of these 42 banks as at the 3ist
July, 1938, is contained in the appendix hereto.
10.
The 36 surviving local banks fall into the following
categories as at the 31st July, 1938 :-
Paid-up Capital
Under £P.25,000
Above £P.25,000
Number of Banks
1 22
20
16
The 20 banks with less than £P.25,000 paid-up capital each
have until October 7th, 1939, to raise their paid-up capital
to this figure.
11.
One of the primary objects of the Ordinance was the
elimination of the many small banks which were carrying on
a type of business quite distinct from any recognized
conception of banking practice and it is apparent that this
objective is being gradually achieved without detriment to
the credit situation in the country as a whole.
12. It should be mentioned that strong and repeated
representations for the amendment of the provisions of the
Ordinance relating to minimum capital were made toGovernment
on behalf of the small banks affected by the Ordinance.
In addition a number of banks made individual appeals for
exemption from the capital requirements of the Ordinance.
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