Birmingham Municipal Bank Regulations, 1946
The Report of the Bank Committee that was presented
to the City Council on March 12th 1946, included the following:
AMENDMENT OF REGULATIONS
Your Committee have caused to be
prepared certain new regulations called the Municipal Bank Regulations, 1946, to amend the existing regulations in regard to the limitation
of deposits and interest on deposits, which matters are dealt with below under separate headings:
Limitation of Deposits
Government have issued a Statutory Order applicable to the Post Office Savings Bank and Trustee Savings Banks, fixing yearly and aggregate
limits of deposits, and have intimated that the terms of the Order would also be made applicable to the Municipal Bank.
on the annual deposits will be £500 and the limit on aggregate deposits will be £2,000.
It is the desire of HM Treasury that
the necessary amendment of the regulations to give effect to these requirements shall operate as from the 1st April, 1946.
In 1932, following the action of the Government in reducing the rate of interest on the 5% War Loan to 3½%, the Bank
was compelled to reduce the rate on deposits from 3½% to 3%, which latter rate has remained in force up to the present time.
position has, however, substantially altered as the result of the steps the Government have taken to reduce interest rates, including
the withdrawal of securities which have hitherto been available to the Bank for investment. The fall in the yield on investments,
and the curtailment of avenues previously available, has compelled the Finance Committee to notify the Bank of their decision to reduce
the rate allowed on moneys placed with the Corporation.
These factors, combined with the likelihood that low interest rates will
continue to apply for some years, have caused your Committee to give serious consideration to the Bank's position. After careful examination
of the figures, your Committee have come to the conclusion that the rate of interest must be reduced, and they recommend the Council
to approve a reduction from 3% to 2¾ to take effect from the 1st July, 1946, as it is necessary for three months' notice to be given
to the depositors.
Your Committee recommend that, subject to the approval of HM Treasury and the Registrar of Friendly Societies
(who have already signified their willingness to give the same), the Municipal Bank Regulations, 1946, which have been framed to give
effect to the foregoing matters and are set out hereunder, be now prescribed:
REPORT OF THE FINANCE COMMITTEE ON THE REPORT OF
THE BANK COMMITTEE
RATE OF INTEREST ON DEPOSITS
The Finance Committee concur in the recommendation of the Bank Committee
to reduce the rate of interest on deposits from 3% to 2¾%, with effect from the 1st July, 1946.
It was moved by Mr Alderman Barrow,
seconded, and Resolved:
That, subject to the approval of HM Treasury and the Registrar of Friendly Societies, this Council do
hereby prescribe the following Regulations, and that the Town Clerk be authorised to affix the Corporate Seal thereto and to make
application for the necessary consents:
BIRMINGHAM MUNICIPAL BANK REGULATIONS, 1946
(1) These Regulations may be cited as
the Birmingham Municipal Bank Regulations, 1946.
(2) For Regulation No. 36 of the Birmingham Municipal Bank Regulations, 1930,
the following shall be substituted:
(36) Limitation on the Amount of Annual Deposits and on Deposits in the Aggregate
to Regulation No. 37, the Bank shall not receive from any person by way of deposit whether solely or jointly with any other person:
in any Bank year any sums exceeding in the aggregate five hundred pounds whether any sum has been previously withdrawn within that
year by that person solely or jointly with any other person or not;
(b) at any time any sum which when aggregated with any other sum
then standing to the credit of that person will cause the total amount standing to the credit of that person to exceed two thousand
Provided that the said limits of five hundred pounds and two thousand pounds shall not operate to prevent the crediting
of a depositor's account with interest on deposits in any such account.
(3) The exceptions provided by Regulation No. 37 of the
Birmingham Municipal Bank Regulations, 1930, shall be read as extending not only to the limitation of the amount of annual deposits
but also to the limitation on the amount of deposits in the aggregate.
(4) For sub-section (2) of Regulation No. 39 of the Birmingham
Municipal Bank Regulations, 1930, as amended by Regulation No. 2 of the Birmingham Municipal Bank Regulations, 1932, the following
shall be substituted:
(2) Interest shall be allowed on every complete pound deposited at the rate of two pounds fifteen
per centum per annum.
(5) (i) Regulations Nos. 2 and 3 of these Regulations shall come into operation on Monday, the 1st day
of April, 1946, on and from which date Regulation No. 36 of the Birmingham Municipal Bank Regulations, 1930, is hereby repealed.
Regulation No. 4 of these Regulations shall come into operation on Monday, the 1st day of July, 1946, on and from which date the Birmingham
Municipal Bank Regulations, 1932, are hereby repealed.
DJP/October 6th 2009