TRADING BANKS

Manawatu Standard, Volume LVII, Issue 224, 21 August 1937, Page 6

TRADING BANKS

RISE IN ADVANCES. MOVEMENTS IN DEPOSITS. A further decrease in overseas funds, a seasonal dcclino in free doposits, another increase in fixed deposits, and an increase in advances aro the principal featuros of tho _ monthly statement of tho assets and liabilities of the six trading banks in Now Zealand as at Monday, July 26. Tho ratio of advances to total deposits has increased to 69.4.5 S per cent. Furnished in accordance with the provisions of tho Reserve Bank Act, 1933, tho statement, which -was gazetted this week, shows tho following: aggrograte figures in respect of the six banks; — LIABILITIES.

(lib) Aggregate unexercised. OVERSEAS FUNDS DECREASE. The trading banks' London funds on July 26 totalled £11,225,913, as compared with £12,174,139 on June 28, a decrease of £948,226. Overseas funds clsewhorc than in London in respect of New Zealand business on Jul'v 26 totalled £4,729,405, a decrease of £298,030. The total overseas funds, London and elsewhere, held bv the trading banks on .July 26, amounted to £15,955,318, a decrease of £1,246,256 since June 28. The. totals of the trading banks' overseas assets in respect of Xew Zealand business ns shown in tho monthly returns comparo as follow: —

RISK IN FIXED DEPOSITS. Demand liabilities, or current account balances, held by the trading banks in Now Zealand as at July 26, amounted to £34,824,604, a decrease of £1,227,939 since June 28. _ Time liabilities, or fixed deposits, in New Zealand on July 26 totalled £33,304,091, an increase of £356,132 since June 28. The total of dema-nd and time liabilities in tho Dominion on July 26 was £68,128,695, a not decrease of £871,807. The ratio of demand to time liabilities on July 26 stood at 104.565 per cont., compared with 109.422 per cent, on June 28. A comparison of the trading banks' demand and timo liabilities and tho totals of the two aro as follow:

Demand liabilities elsewhere than in New Zealand in respect of New Zealand business on July 26 totalled £1,424,873, as compared with £1,254,887 on June 28, an increase of £169,986. Time liabilities elsewhcru than in New Zealand totalled £475,510 a decrease of £57,778. The- item New Zealand business, execs* of assets over liabilities on July 26 was £18,071,358, a decrease of £71,317 siiftc June 28. Reserve bank balances of the trading banks on July 26 stood at £9,755,451, com pared with £9,818,149 on June 28, a decrease of £62,698. Government securities hold by the trading; banks on July 26 totalled £7,518,421, an increase of £22,908 since Juno 28. Other securities amounted to £291,363, a decrease of £1564. INCREASE IN ADVANCES. Aggregate advances of the trading banks in Now Zealand on July 26 amounted to £47,586,260, as against £47,175,021 on June I 28, an increase of £411,239. Aggregate discounts on July 26 wore £584,281, as against £535,878 on June 28. an increase of £48,403. The total of advances and discounts on July 26 was £48,170,541, an increase of £459,642 since Juno 28. The excess of demand and timo liabilities over aggregate advances and discounts in New Zealand on July 26 was £19,958,154, as compared with £21.289,033 on June 28. The relative positions of advances and deposits at different periods are shown in the following table:— I

Tho ration of advances ami discounts to total demand and time liabilities in New Zealand on July 26 was 70.705 per cent., compared with 69.145 per cent, on June 28. The aggregate unexercised overdraft authorities on July 26 totalled £24,957.807, as compared with £25,543,819 on June 28, a decrease of £586,012. NOTE CIRCULATION. The note circulation in New Zealand continues at a level much above that of the previous year. The total on Julv 26 was £3,645,774. a decrease of £13,076 since June 28. The pc«ilion of the note circulation &3 at July 26, compared with Hint at the dates of previous returns, was as shown in the following table":—

(a) Demand liabilities in N.Z. *34,824,604 (b) Time liabilities in N.Z 33,304,091 (c) Demand liabilities else where than in New Zealand incurred in respect of New 1,424,873 (d) Time, liabilities elsewhere than in New Zealand incurred in respect of New 475,510 (j) Notes of own issue in circulation payable in N.Z — (m) N.Z. business—Excess of 18,071,358 Total £88,100,436 •Including; transfers from Ban c of Now Zealand's long-term mortgage fund of £367,812. ASSETS. £ (c) Reservo balances hold in the Reserve Bank of New Zea9,755,451 (f) Overseas assets in respect of Now Zealand business — 11,225,913 (2) Elsewhere than in Lon4,729,405 (g) (1) Gold and gold bullion held in New Zealand 1,190 (2) Subsidiary coin held in 751,233 (h) Aggregate advances in 47,586,260 (h) Aggregate discounts in New 584,281 (i) Reserve Bank of New Zea3,945,053 (k) Securities held in N.Z.— (1) Government 7,518,421 (2) Other than Govt. ... 291,363 (1) Value of land, buildings. furniture, fittings and equipment hold in N.Z Total £ 1,711,866 88,100,436 overdraft authorities £24,957,807 1

London. liilsewhcre. Total. 1936. £ £ £ Jan. 27 .. . 11.149.879 6,183,192 17,333.071 Mar. 30 .. 14,143,369 6,226,321 20,369,690 June 29 ... . 17,316.659 5,900,334 23.216,993 Sept. 28 . . 12,890,571 5,785,499 18,676,070 Dec. 23 .. 1937. Jan. 25 ... 7,907,916 5,373,730 13,281,646 7,361.885 5.221,770 12,583,655 Mar. 29 . . 11,048,114 5,442,104 16,490,213 May 31 . , 11,857,865 4.983,080 16.840.945 Juno 28 ... 12.174.139 5,027,435 17.201.574 July 26 ... 11,225,913 4,729,405 15,955,318

Demand. Time. Total. 1936. £ £ £ Jan. 27 .. 28,827,915 37,033,607 65,861,522 Mar. 30 . 31,946,454 36,529,960 68,476,414 Juno 29 30,805,731 36,066,713 66,872.444 Sept. 28 28,934,657 34,485,842 63,420,499 Dec. 23 . 1937. 31,080,367 33,123,748 64,204,115 Jan. 25 .. 35,020,901 32,949,080 67,969.981 Mar. 29 36,898,151 31,974,736 68,872.887 May 31 .. 36,667,413 32,505,506 69,172 r 919 Juno 23 . 36,052,543 32,947,959 69,000,502 July 26 . 34,824,604 33,304,091 68,128,695

Advances Kxccss of Deposits. , k discounts. deposits. 1936. £ £ £ Jan. 27 . 65,861,522 . 45,649,334 20,212,180 Mar. 30 . . 68,476.414 44.918.852 23,557.563 June 29 . 66,872,444 45,077.019 21,795,425 Sopt. 28 . 63,420,499 45,999,813 17,420,656 Dec. 28 .. . 64,204,115 48,281,982 15,922,13a 1937. Jan. 25 .. 67,969.981 47,416,649 20,553,332 Mar. 29 .. 68,872,887 46,954,095 21,918.792 May 31 .. 69.172.919 48,033,164 21,139,755 June 28 .. 69.000,502 47,710.899 21,289.60? July 26 . 68,128,695 48,170,541 19,958,154

Trading Reserve Banks. Bank. Total. 1936. £ £ £ Jan. 27 ... 571,768 6,275,992 6,847,760 Mar. 30 . 545,254 6,559,787 7,105,041 June 29 . 517,745 6,704,193 7,221,938 Sept. 28 . — 7,771,941 7,771,941 Dec. 28 . — 10,443,223 10,443,223 1937. Jan. 25 ... — 8,355,153 8,355.153 Mar. 29 .. •— 9,843,930 9,843>,930 May 31 .. — 9,040,074 9,040.074 Juno 28 .. — 8,658,850 8,658,850 July 26 .. — 8,645,774 8,645,774