QUARTERLY BANK RETURNS.

Shannon News, 26 July 1927, Page 4

QUARTERLY BANK RETURNS.

FINANCIAL POSITION IMPROVING The banking returns for the June quarter, though they do not compare favourably with the corresponding quarter of last year, give hopeful indications when contrasted with the March quarter of the current year. The recovery is bound to be gradual, and the banking returns show that .a„,beginning towards recovery has been made. At the outset it can be stated that the position has improved ’ slightly as compared with the March quarter, but it still shows the necessity fo&"caution. Dealing first with the- three. elasses of deposits, the position, as compared with last year, is as under:— June, 1926'. Jhhe, 1927.

52,595,627, 49,773,409 The GoA T ernment deposits show a decrease.of J £1,043,235, and the free deposits a shrinkage of The fixed deposits, howeA’er, have increased by the substantial sum of - £1,074,251. Compared Avith the March quarter, the free deposits or current account ; i*alancea are larger by £301,484, while: the fixed deposits shoAV an increase of £661,070. This improvement, so far as the free deposits are concerned, would be.due to returns for produce coming in, and the increase in the fixed deposits : is certainly due to the more attractive rate of interest offered by the banks. The advances at show an increase of £2,259,165 as coihpar6d Avith the June quarter of' last yea?/" and an increase of £305,809 when • compared with.the March quarter of the Current year. The advances of the . several banks are as under:— . June, 1926. June, 1927.

46,985,833 .49,244,998 All the banks Avere draAvn upomfor increased accommodation, and- -particularly the Bank of NeAv Zealand . Taking the aggregates of the free and fixed deposits and the advances and discounts, it is seen that in fhfe June quarter of 1925 the deposits exceeded the advances by the substantial sum of £7,0273868; for the June quarter of this year the advances exceed tlie deposits by £4,262,740, so that, compared with tAvo years ago, there is a falling'; away by sessed ample funds; uoav the.* fall in deposits and the pressure fqr-.advances is making it very difficult for the nanks, and it is one of the principal reasons Avhy they have advanced their rates for. fixed deposits and adA'anc.es*

Deposits — £ : ■■ >’* £ (Joveniment 4,326,278 3,283,043 Free 27,594,496 24,741,262 Fixed 20,674,853 21,749,104

Bank £ £ New Zealand .. 19,993,592- • 21,376,000 Union ........ 5,665,238 • .6,948,248 N.S. Wales 6,110,804 6*338,887 Australasia 4,746,010 . 4^80,853 National 9,173,637 9^17,280 Commercial ... 1,296,552 1,483,730