BUILDING SOCIETIES.

Manawatu Standard, Volume LIII, Issue 9, 8 December 1932, Page 5

BUILDING SOCIETIES.

REGULATION OF SAVINGS BANK BUSINESS. (By Telegraph.—Special to Standard.) WELLINGTON, Dec. 7. Tho rights of building societies to accept moneys on deposit are Restricted by the Finance Bill which was introduced in the House of Representatives by Governor-General’s message. Societies at present carrying on savings bank business are not to be debarred from operating as in the past, but certain conditions will have to be complied with. It will not be lawful, however, for societies which, at the passing of the legislation, do not hold such deposits to accept them in future.

The limit on the amount of savings bank business that can be dono by societies at present operating is fixed in the Bill at £200,000 or tho amount of tho paid up capital, whichever is the lower. It is aiso provided that no individual deposit shall be accepted which has the effect of increasing beyond £2OO the aggregate savings bank deposits, including accrued interest, held by that depositor. In'addition, societies engaged in business will bo required to keep 10 per cent, of their deposits in liquid assets, either as cash or in New Zealand Government securities, or in both. Power is given the Minister of Finance to grant exemptions from this requirement for a period lip to three years. The Bill also makes it an offence for a building society to hold itseif out as an institution carrying on savings ba.uk business, and the maximum penalty for breaches is fixed at £IOO.