Full resolution (JPEG) - On this page / på denna sida - XI. Banking, Credit, and Insurance - 2. Banking. By I. Hultman
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other banks.
675
designated Bankinspektionen, the Bank Inspection Board instructions for the
conduct of which have been issued by the Government. The inspection is
effected firstly by monthly reports, drawn up in accordance with a prescribed
form and lodged with the Bank Inspection Board, secondly by a representative
appointed for each bank, who has to take part in the annual auditing and at
least once every quarter take stock of the cash in the till at the bank’s head
office, examine whether the report last made agrees with the accounts, and in
case of anything being found wrong at once report the matter to the Bank
Inspection Board, and finally by personal supervision carried out by one of the
members of the Board. The Board is entitled to convene meetings of the board
of directors of the bank, and in certain cases also extraordinary shareholders’
meetings. A member of the Board is entitled to be present at the
shareholders’ meetings, and at board meetings summoned by the Bank Inspection Board,
and to take part in the proceedings. If the Board finds cause to assume that
10 % of the original capital (apart from the reserve and other funds) has
dwindled away in consequence of losses, the board of directors will be under
the obligation, when called upon by the Bank Inspection Board to do so,
immediately to draw up a balance-sheet and to summon the auditors. The Bank
Inspection Board is empowered to veto a resolution of the board or of a
shareholders’ meeting which infringes the law or the company’s articles of association.
In the case of grave transgressions of the Banks Act or the articles of
association of the company, it is open to the Government to declare the charter
rescinded. — The expenses of bank inspection are at the charge of the banks
themselves, each bank contributing an annual fee of at most 1/ioo % of the
aggregate amount of the bank’s funds (at present the contribution is fixed at
Viooo %).
The above account of Swedish banking legislation will have made it
evident that the object it has had in view has been to ensure the stability
of the banks in their capacity as banks of deposit. The clause in the 1911
Banks Act, according under certain provisoes the right to banks of dealing
in stocks and shares on their own behalf, is as a matter of fact of little
importance. Out of the banks at present (October 1914) existing,
numbering 70 with a total capital of upwards of 660 mill, kr., there are
only 20 that fulfil the requirements entitling them to deal in stocks and
shares, while the total amount set apart for use in this direction is only
38 mill. kr. At the time named the total holding of stocks and shares
in the banks’ own possession stood entered in the books as amounting to
13 mill. kr. in value, i. e. insignificant sums as compared with the advances
that the banks had granted to their customers at the same juncture, the
total of which was close upon 2 400 mill. kr. Of that amount, however,
734 mill. kr. consisted of advances made on the security of stocks and
shares. Besides the banks held bonds for an entered value of 225 mill. kr.
Though the Swedish banks, consequently, by buying bonds and by
making advances on stocks and shares, have rendered service to the
industries of the country, yet they have not been in a position to help them
as effectively, for instance, as the German "Effektenbanken". This has
moreover been recognized as a drawback, and efforts have been made to
remove it.
The Underwriting Banks Act of 1909, above referred to, was designed to
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