bonds, shares and other securities for an unlimited period but subject to
at most three months’ notice; to open cash or current acoount credits for
at most twelve months against such collateral pledges as bonds, shares,
or mortgages or against the security of guarantors. The maximum amount,
however, that the bank is permitted to invest in this last-mentioned loan
business is 15 million kronor.
The Riksbank has under its care and management a special fund (called
the avbetalningsl&nefonden or instalment-redemption loan fund), with a
capital of 12-5 million kronor, from which it makes advances to be paid
back by instalments on such collateral pledges as bonds, shares, mortgages,
or on thè security of guarantors.
The Riksbank issues bank post bills (postvaxlar) and accepts deposits
both on deposit and on cheque account. The Riksbank as' a general rule is
not permitted to give interest on deposits ; it is allowed, however, to open a
current account at interest for firms that discount their bills at the Riksbank
and do not engage in banking business themselves. In connection
with its-oheque transactions the Riksbank is entitled.to arrange for clearing,
and the bank has availed itself of this right : by agreement with the larger
banks in Stockholm a clearing-house system has been established, in which
all the banks in Sweden directly or indirectly participate. — The Riksbank
acts as a depository of articles of value for safe custody and of securities
etc., which it preserves and administers on behalf of their owners. It is
one of its functions to do duty as the Government’s banker free of charge;
no overdraft is allowed, however, on any of the various Government
accounts, except in the case of the 'National Debt Board, which in its
administration of the National Debt is entitled to avail itself of an overdraft
to the amount of l 1/2 million kronor.
The Riksbank is bound by law to have at least one branch office in
each lan, except in Stockholm lan, thus altogether at least 23 branch
offices; at present it has 25.
The Riksbank is not permitted to hold other real property than its Swn
premises (head offices, branch offices, paper manufactory, printing works).
— A weekly return of the Riksbank’s holding of gold, silver and bullion,
of the total notes in circulation, and of the unutilized power of note issue;
is to be published in the Official Gazette. The Riksbank must publish
and distribute as a supplement.to the Official Gazette at the end of every
month an account of its assets and liabilities, and at the close of every
year a complete report of the Riksbank’s position.
Other Banks.
The law now in force respecting other banks than the Riksbank is contained
in the Banks Act of June 22 1911.
Pursuant to this Act, banking business in Sweden may only be carried on by
1) the Riksbank, 2) joint-stock banks 3) unlimited liability banking companies,
Office-room of the .Nordiska KrecLitbanlcen> in Stockholm.
auu -±) private persons or parmersmps (nanaeisooiag) m wmcn personal names
form a constituent part of the fixm-name. Banking business within the Act
is such business as comprises the receiving of deposits from the general public
on such accounts as customarily occur. Thus cooperative societies are not
banks, if the receiving of deposits that they carry on is confined to the members
of the society. The term bank may only be used in the firm-name by 1) the
Riksbank, 2) the joint-stock banks, 3) the unlimited liability banking companies,
4) underwriting banks (emissionsbank),1 5) the Post-Office Savings-Bank and
other savings-banks, and 6) the Iron Institute (Jernkontoret) and the General
Mortgage Bank. — I f the banking company in question is considered
likely to be of the benefit to the. public, and if its articles of association
are in accordance with the law of the land, the Government grants it a
charter (oktroj) for ten years. (It is thus open to the Government to prohibit
the formation of either a limited or an unlimited liability banking company,
when any such company is manifestly not for the benefit of the public.)
The company’s capital shall be at least a million kronor; however, if
the bank has manifestly been established to serve the needs of a locality with
a slender business turnover, the minimum capital may, subject to the sanction
of the Government, be fixed, at half thè above amount. The firm-name of a
joint-stock bank shall indicate the fact of the liability of the shareholders being
limited. The firm-name of unlimited liability banking companies whose capital
1 The purpose or scope of this type of bank, which was created (at any rate on paper)
by a special Act of 1909, is to assist (by the underwriting of shares) in the formation
or constitution of joint-stock trading companies.