Full resolution (JPEG) - On this page / på denna sida - XI. Banking, Credit, and Insurance - 2. Banking. By I. Hultman
<< prev. page << föreg. sida << >> nästa sida >> next page >>
Below is the raw OCR text
from the above scanned image.
Do you see an error? Proofread the page now!
Här nedan syns maskintolkade texten från faksimilbilden ovan.
Ser du något fel? Korrekturläs sidan nu!
This page has never been proofread. / Denna sida har aldrig korrekturlästs.
676
xi. banking, credit, and insurance.
facilitate the formation of banks whose functions should principally, if
not exclusively, consist in the financing of industrial undertakings. No
such bank, however, has been started, a fact that is probably due to the
very rigorous terms prescribed by the Act respecting these banks, more
especially the item that only banks were entitled to be shareholders in an
Underwriting Bank. The difficulty has been practically obviated by
ordinary companies being formed to finance industrial enterprises, such
companies being governed of course by the laws affecting limited liability
companies. Such banks as are entitled to possess shares can then become
shareholders in any such company. Among the companies of this type
the best known are: Svenska Emissionsaktiebolaget, Aktiebolaget
Provi-dentia, Aktiebolaget Svenska Emissionsinstitutet, and Finansaktiebolaget.
The principal activity of the banks consists in making advances for short
periods with the money deposited with them by the public. The different
forms of deposit business are as follows: a) Deposit Accounts, under two
headings, depositionsräkning and kapitalräkning, the difference between
which is only of a formal kind, for sums that are to be repaid at a given
date or stated notice; b) Accounts Current or Cheque Accounts, for money
to be repaid at call; and c) Savings-Bank Accounts, for money deposited
on conditions which are practically the same as those in force for
Savings-Banks.
Advances are usually made in one of the three following ways: a) The
discounting of bills; b) the granting of loans on the security of mortgages,
debentures, stocks, and shares, etc., or on personal guarantee; c) the
allowing of overdrafts or cash credits on similar security. Another form of
account is the running account, practically a combination of cheque
account and cash credit, enabling the customer, in accordance with
agreement and on security lodged, to overdraw his account at the bank up
to a stipulated amount.
The various articles of association of the banking companies, which
have been duly authorized by the Government, embrace a prohibition
for the several banks to discount bills or to accord loans for a longer space
of time than six months, or to grant the right to overdraw an account for
more than one year. Some banks, however, are also entitled, subject to
certain restrictions, to grant loans repayable by instalments for at most
ten years. The several articles of association likewise contain a
prohibition on banks granting credit on the security of only one guarantor’s
name.
The banks carry on besides a number of other branches of activity.
Thus, they issue bank post bills (generally speaking sight drafts drawn
on some Stockholm bank, which according to mutual agreement among
the banks are cashable at any banking establishment throughout the
country); they also issue letters of credit to travellers, payable at any of
the more important towns on the continent, undertake the collecting of
matured bills, dividend wa.rrants, drawn bonds etc., accept securities depo-
<< prev. page << föreg. sida << >> nästa sida >> next page >>
