§ Mr. Arthur Lewis
asked the Chancellor of the Excequer why he is preventing the banks from paying more than 9½ per cent. interest to their small depositors on sums of less than £10,000 while allowing any 66W rate of interest for amounts above £10,000 ; and under what statutory authority this action has been taken.
§ Mr. Nott
The request by the Governor of the Bank of England to the banks on 11th September aided the competitive position of the building societies by enabling them to take future decisions on interest rates in the assurance that the banks would not outbid them for small deposits. Other savings media which are not subject to this restriction are of course available to small depositors. The question of statutory action did not arise.