Trading Bank Advances Down

Press, Volume CVI, Issue 31116, 20 July 1966, Page 17

Trading Bank Advances Down

(New Zealand Press Association) WELLINGTON, July 18. There was a further fall of £B.sm in Trading Bank advances in June in line with usual seasonal movements, The New Zealand Bankers’ Association research directorate said today.

The continued squeeze on bank credit was reflected in total credit limits which at £4o6m on June 30, were also down, being £2m lower than a month before and £9m lower than a year before. Term loans, which over the last year included special finance in the form of meat hygiene loans, were slightly

higher over the month. The recent budget announced that additional funds would be made available for farm development through term loans. The term loan was introduced in 1963 to provide medium term accommodation for essential industry and export finance. The fund was fully committed before the end of 1964 and further lending has been possible only from repayments. There was a further recovery in bank liquidity in June but balances at the Reserve Bank at £3om were still well below last year’s figure of £ssm. Deposits in the Trading Banks’ Savings Banks rose £3.Bm in June against £2.4m in May and now stand at over £72m. “Firm restraint on bank credit will continue in line with' the requirements of official policy,” said the research director of the association (Mr R. O. Smillie), commenting on the figures.