DOMINION BANKING

Wairarapa Times-Age, 31 March 1939, Page 3

DOMINION BANKING

RESERVE BANK STATEMENT.

INCREASE IN OVERSEAS FUNDS.

(By Telegraph—Press Association.)

WELLINGTON, This Day.

The banking position of the Dominion as shown by the weekly statement of the Reserve Bank of New Zealand and the latest returns of the six trading banks as at February 28 still continues to show abnormal features. The Reserve Bank statement shows that on Monday its sterling exchange funds had increased by £112,011 to £N.Z.4,659,874. The bank’s reserve was then £7,428,125, an increase of £110,938 for the week, and compared with £19,731,442 as at March 28, 1938. The proportion of reserve to notes and other demand liabilities on Monday was 25.419 per cent, compared with 25.129 per cent on March 20, and 74.145 per cent a year ago.

There was a major increase last week of £508,545 in the note issue, which on Monday stood at £15,334,046, a figure which is £1,779,579 in excess of that of a year ago. Advances to the Primary Products Marketing Department at £7,431,055 were up by £42,415, but advances to the State for other purposes at £12,000,000, were lower by £250.000. The State’s total indebtedness to the Reserve Bank on Monday was £19,431,055.

The trading banks’ returns give evidence of further Government indebtedness, their total holdings of Government securities at February 28 being £9,862.679, an increase of £300,000 since January 30. The trading bank’s returns for the month ended February 28, show that at that date, their London funds had in-

creased by £840,704 to £5,011,368, as against £4,170,664 on January 30, but overseas funds held elsewhere than in London had decreased by £89,793 to £1,704,277. Thus the total overseas funds on February 27 were £6,715,645, a net increase of £750,911. Against this total, however, were demand and time liabilities amounting to £2,458,208, thus making the net overseas assets of the trading banks £4,257,437. compared with £3,147,366 on January 30, an increase of £1,110,071. At the corresponding date of last year the net overseas assets of the trading banks totalled £8,269,313.