TRADING BANKS

Wanganui Chronicle, Volume 83, Issue 47, 25 February 1939, Page 15

TRADING BANKS

INCREASE IN OVERSEAS • FUNDS ADVANCES DOWN AGAIN SHARP RISE IN DEPOSITS An improvement of nearly £N.Z. 1,000,000 since the end of December is shown in the net overseas funds of the six trading banks in New Zealand. The summary of their monthly returns showing the position as at January 30 reveals also a contraction of £1,610,000 in advances and discounts, and an increase of £2,140,430 in demand and time deposits, mainly the former. The banks' holdings of Government securities have increased during the five weeks covered by the returns of £BOO,OOO. The monthly summary of assets and liabilities as at Monday, January 30, furnished in accordance with the provisions of the Reserve Bank Act shows the following aggregate figures in respect of the six banks:—Liabilities £ (a) Demaftd liabilities in New Zealand ”36,175,876 (b) Time liabilities in New Zealand 29,934,326 (c) Demand liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 387,437 (j) Notes of own issue in circulation payable in New Zealand (m) New Zealand business —Excess of assets over liabilities 18,690,876 Total £87,618,446 •Including transfers from Bank of New Zealand’s long-term mortgage fund of £441,053. Assets (e) Reserve balances held £ in the Reserve Bank of New Zealand 8,584,683 (f) Overseas assets in respect of New Zealand business — (1) In London 4,170,664 (2) Elsewhere tnan in London 1,794,070 (g) (1) Gold and gold bullion held in New Zealand 337 (2) Subsidiary coin held in New Zea- • land 819,469 (h) Aggregate advances in New Zealand 55,414,981 (h) Aggregate discounts in New Zealand 772.055 (i) Reserve Bank of New Zealand notes 4,390,726 (k) Securities held in New Zealand—(l) Government . 0,562,679 (2) Other than Government 266,439 (l) Value of land, buildings. furniture, fittings and equipment held in New Zealand ... 1,842,343 Total £87,618,446 (hh) Aggregate unexercised overdraft authori-

ties £22,215,547 Overseas Funds Increase Between December 26 and January 30 there was a net increase of £965,367 in the trading banks’ overseas funds. London funds on January 30 amounted to £4,170,664, as against £2,785,235 on December 26, an increase of £1,385,429. Overseas funds in respect of New Zealand business held elsewhere than in London on January 30 totalled £1,794,070. compared with £2,214.132 on December 26, a decrease of £420,062. Total overseas funds, London and elsewhere, on January 30, were £5.964,734, compared with £4,999,367 on December 26, a net increase of £965,367, but still £88,444 below the total of £6,053,178 on November 28. Against the total overseas funds, however, there were on January 30 demand and time liabilities overseas amounting to £2,817,368, thus reducing the net overseas assets of the six trading banks to £N.Z.3,147,366, compared with £N.Z.2,148,40.3 on December 26, an increase of £N.Z.998,963. At the corresponding date of last year the net overseas assets of the trading banks amounted to £N.Z.6,754,774.

Sharp Rise in Deposits Demand liabilities, or current account balances, of the trading banks in New Zealand at January 30 totalled £36,175,876, as against £.34,171,765 on December 26, an increase of £2,004,111. Time liabilities, or fixed deposits in New Zealand, on January 30 amounted to £29,934,326, compared with £29,798,007 on December 26, an increase of £136,319. The total of demand and time liabilities in New Zealand at January 30 was £66,110,202, compared with £63,969,772 on December 26, an increase of £2,140,430. Demand liabilities elsewhere than in New Zealand in respect of New Zealand business at January 30 amounted to £2,429,931, compared with £2,163,870 on December 26, an increase of £266,061. Time liabilities elsewhere than in New Zealand in respect of New Zealand business on January 30 were £387,4.37, as against £687,094 on December 26, a decrease of £299,657. The total of demand and time liabilities overseas in respect of New Zealand business at January 30 was Thus £2,817.368, compared with £2,850,’’64 on December 26, a net decrease of £33:596. The item: New Zealand business, excess of assets over liabilities, on January 30 stood at £18,690,876, compared with £18,251,593 on December 26. an increase of £439,283. Reserve balances of the six trading i banks on January 30 totalled £8,584,1683 as against £7,189,281 on December ■ 26. an increase of £1.395.402. ■ Government securities held by the 11 rading banks on January 30 totalled I £9,562,679, compared with £8,762,679 lon December 26, an increase of £BOO,1000.

Decrease in Advances A further contraction in advances lis shown by the latest returns. Aggregate advances.in New Zealand oi January 30 were £55,414,981, compared with £57,128,068 on December 26, a reduction of £1,713,087. Aggre-