GIPE-PUNE-OIIOI2 - DSpace@GIPE

THE BANK CAPITALISM OF YOUNG BENGAL ,147
J
the world's big banks which make it a point to observe
34 to 80 per cent as the proportion of reserve to paid-up
capital. Bengali banks and bankers should certainly find
this lesson from comparative bank-administration
eminently 'instructive. None the less is it appropriate to
note that certain big banks of the world have been observing
. a cent per cent equality between the reserve
and the paid-up capital, and that in certain others
the reserve is more than the paid-up capital.
Let us cite the following figures from British and
French experiences of 1930: 35
Name Capital Reserve Porcentage
of Reserve
to Capital
£ £
1. Midland Bank, London 14,248,012 14,248,012 100
2. Westminster Bank, London 9,320,157 9,320,157 100
3. National Provincial Bank,
LOlldori 9,479,416 9,479,416 100
Francs
Francs
4. Credit Lyonnais, Lyons 408,000,000 800,000,000 196
5. Co"'ptoir Natbnal d'Escomp:e
de Paris 400,000,000 430,000,000 107.5
It is noteworthy that it is to this group of bankswith
reserves equalling or exceeding the paid-up
capital that a large number of our "cottage banks, " the
Bengali loan offices, belong. Let us analyze the balance
sheets of some of these credit institutions and we get the
figures as follows:
35 In 1929 the Mitsui Bank of Japan observed 112% as the relation
between· reserve (67,600,000 yens) and paid up capital 160,000,000 yens).