DOMINION FINANCE

Sun (Auckland), Volume II, Issue 402, 10 July 1928, Page 12

DOMINION FINANCE

FAVOURABLE BANKING POSITION LARGE EXCESS OF DEPOSITS Banking returns for the quarter ended June 30 issued by the six banks trading in New Zealand show an excess of deposits over advances of £7,520,178, compared with an excess of advances a year ago of £4,262,740. Taking the three classes of deposits and comparing the figures with those for last year, the movements have been as follows:

■‘‘Decrease. Distribution of Deposits The following tables show the movements in deposits held by the various

Totals £21,749,104 £27,589,*8 £5,840,884

The substantial increase in fixed deposits shows that the banks accomplished their purpose of attracting deposits when they raised the rates. Both classes of deposits total £52,947,133, which is greater than in 1925, a year of good prices for produce. The figures for recent years are as follow:

A noticeable feature is that while in the June quarter of previous years, the free deposits were substantially greater than the fixed deposits, this year the latter exceed the former by a large amount.

MOVEMENT IN ADVANCES The advances are considerably less than in the June quarter of last year and the previous year, but are larger than in 1925 and preceding years. The decreases are shared by all the banks, as shown below:— ADVANCES.

Totals . £49,244,998 44,249,501 £4,995,497 In addition, discounts at £1,177,454 show a reduction of £330,654, so that the borrowings by the public from the banks have shrunk by £5,326,151, as compared with last year. Following is a comparison of the relation between deposits and advances in recent years, and in tlie last four quarters:— Quarter. Deposits. Advances. Excess.

The figures show that conditions are now normal, and it is to be noted that when conditions are normal, the banks cannot find use for all their available resources. The banking returns make the outlook for the new • season very bright. Funds are in ample supply, and with rates reduced a stimulus will be given to general trade. As there is more money about, domestic trade should be active and an increase in imports may be expected.

June, 11)27. June, 1 92S. Increase. Govt. £3,283, ,043 £ 1,956,075 * 11 £ 1,326,968 Free 24,741 ,2(52 25,357,145 615,883 Fixed 21,749 ,104 27,5S9,988 5,840,88 4 Totals £49,773, 409 £54,903,20S £5,129,799

banks:— Free I Deposits Bank June, 1927. N.Z. £11,689,926 June. 1928. £11,966,606 Increase. £276,680 U nion 2,895,637 2.S49.425 *46,212 N.S.W. 2,559,539 2,717,036 157,497 Aust/sia. 2,327,555 2,516,731 189.176 National 4,313,270 955,335 4,332,868 19.098 Commerc. 974.979 19,644 Totals £24,741,262 £25,357,145 £615,883 ♦Decrease. Fixed Deposits Bank June, 1927. June. 1928. Increase. N.Z. £10,938,803 £13,425,599 £2,486,796 Union 2,390,786 3,123,339 732,553 772,774 731,144 N.S.W. Aust/sia 2,860,763 1.J61.363 ■SfeoSf 3,633,537 2,492,507 National 4,334.418 580.538 963,172 Commerc. 154,445

June Quarter. Free. Fixed. Totals. £ £ £ 1924 . . . 28,336,760 19,292,552 47,629,312 1925 . . 30,497,209 20,966,426 51,463,635 1926 . . 27,594,496 20,674,853 48,269,366 1927 . . 24,741,262 21,749,104 46,490,366 1928 . . 25,357,145 27,589,988 52,947,133

Bank. June. 1927. June. 1928. DeN. Zealand £ 21,376,000 19,242,877 £ 2,133,123 Union . . . 6,048,24S 5,176,203 872,045 N.S. Wales. 6,338,887 5,620,291 718,596 Australasia. 4,780,853 4,434,749 8,422,650 346,104 National 9,217,280 794,630 Commercial 1,483,730 1,352,731 130,999

£ £ £ June, 1924 . 47,629,312 43,S85,5S6 ♦3,743,726 June, 192d . 51,463,635 43,935,769 *7,527,866 June, 1926 . 48,269,349 48,714,741 f 445,392 June, 1927 . 46,490,366 50,753,106 f4,262,740 Sept., 1927 . 45,213,750 48.815,231 t3,601,481 Dec., 1927 . 45,701,057 49,759,664 f4,058,607 46,070,370 *3,887,925 Mar., 1928 . 49,958,295 June, 1928 . 52,947,133 45,426,955 *7,520,178 tExcess of ♦Excess of advances deposits.