Formation of the
Savings Banks Institute

Details concerning the formation of the Savings Banks Institute (SBI) were reported by the BMB's General Manager to the Bank's Committee of Management in July and October 1945. The SBI was formed in 1948.


Report by General Manager : July 1945

For some years the Joint Committee consisting of Representatives of Trustee Savings Banks and this Bank have been working on a scheme for establishing a Savings Banks Institute. The Municipal Bank, and some Trustee Savings Banks have recognised the Institute of Bankers as the professional standard for their staffs, but the syllabus includes subjects of no value to Savings Bank students. Staffs of English Savings Banks have been lukewarm towards studying under the Institute of Bankers and the attitude of the Institute in declining to allow Scottish staffs to sit for examinations is a source of dissatisfaction.

The scheme for the formation of a Savings Banks Institute has been prepared, and the Trustee Savings Banks at their Annual General Meeting in June last gave approval to the scheme, the main features of which are as follows:

1 Membership to consist of Fellows and Associates, and of Honorary Fellows and Members

2 Examinations to be arranged in two parts; on passing Part I a certificate would be given; on passing Part II the candidate would become an Association and entitled to use the letters ASBI after his name. Election to Fellowship would be by the Council of the Institute, on the following conditions: The Associate must be 30 years of age, and have had 10 years' experience as a Savings Bank officer, and must satisfy the examining Board that he is a fit and proper person to become a Fellow.

3 The examination fee to be 10/6d

4 Subjects:

Part I   (a) English Language and English Literature

            (b) Book-keeping and Accounts

           (c) Savings Bank Law and Practice and History

            (d) General Business Knowledge

Part II  (a) Accountancy, including some knowledge of Auditing, Income Tax and Executorship Law

           (b) Economics

            (c) Savings Bank Law and Practice and History (Advanced Stage)

            (d) Citizenship and Social Services

5 The Management of the Institute would be vested in a Council numbering 17 persons. The first Council will consist of 5 members appointed by the Association; 2 by the Municipal Bank; 2 from each of the Scottish, North-East, North-West, and Southern areas of the Association; and 1 from the Northern Ireland area and 1 from the Municipal Bank. Subsequently, the Council would be made up of 5 nominated by the Association; 2 nominated by the Municipal Bank; 10 elected by Fellows and Associates from the areas mentioned and from the Municipal Bank in the proportions mentioned.

The question of Foundation Expenses has not been finally decided. The Association has taken Counsel's opinion, which is to the effect that under the present constitution the Association has no power to make a grant, but by amending the constitution such provision could be made. The Association and the Government Inspection Committee are considering the matter, and it is probable sanction will be given to the larger Trustee Savings Banks making a grant. The Birmingham Municipal Bank representatives intimated that the Municipal Bank would join with the larger Trustee Savings Banks in this respect.

Many years ago Sir Thomas Jaffrey (a former Actuary of the Aberdeen Savings Bank) set aside a sum of money to be devoted to an educational scheme for Savings Bank staffs, and examinations have been held yearly under that scheme and monetary grants made to successful students. Sir Thomas was consulted on the scheme for establishing an Institute and gave the proposal his approval. Sir Thomas Jaffray's prize scheme will be included in the Institute, and prizes will be granted to successful Trustee Savings Banks candidates as follows:

Part I - 1st Prize 12           2nd Prize 6             3rd Prize 3

Part II - 1st Prize 20          2nd Prize 10           3rd Prize 5

The Municipal Bank will make their own arrangements for their staffs, and it is suggested that the present practice of making grants to those who pass the examinations of the Institute of Bankers should apply equally to the new Savings Banks Institute, viz 10 on passing Part I and 15 on passing Part II.

It will not be possible to bring the scheme into full effect for examinations in the Spring of 1946, and therefore such examinations in the Spring of 1946, and therefore such examinations will be confined to Part I. Many officers serving with the Forces would not be able to enter for the examinations in 1946, but there are others serving as temporary officers with a view to permanent appointments whom the Managements of the respective Banks would like to test by examination. The scheme will be brought to the notice of officers serving with the Forces, and in respect of whom the Council may deem it necessary to grant some concession because of interruption of studies.

The Bank Committee is now asked to give their approval to the scheme for setting up a Savings Banks Institute, and participation in same with Trustee Savings Banks on the lines laid down.


Report by General Manager : October 15th 1945

The syllabus for Part I examinations has been fixed, and examiners appointed. In respect of Municipal Bank candidates, the study and examination test for Savings Bank Law and Practice will differ from the arrangement made for Trustee Savings Bank candidates, and after conferring with the Acting Principal of the Commercial College, it has been arranged that Mr J W Raftery (one of the Bank's Inspectors) will take the class in this subject. Mr Minshull (Deputy Town Clerk) has been invited to act as Examiner and to advise as to the course of study, and has consented. It is recommended that a fee of 2. 2. 0d should be paid to Mr Minshull as Examiner and 5. 5. 0d for his service in deciding upon the syllabus, course of study, etc. These rates are the same as paid by the Institute of Housing for whom Mr Minshull also acts as examiner.

The Executive Body of the Institute have decided that the twelve largest Savings Banks, including Birmingham, should be asked to subscribe the sum of 25 each towards the formation expenses, etc of the Institute, and it is recommended that the Bank should agree to make that contribution.