BANKS AND BANKING.

Auckland Star, Volume LVII, Issue 205, 30 August 1926, Page 4

BANKS AND BANKING.

LONG-TERM MORTGAGES. Constant expansion (writes the "Financial Times") has been the lot of most of the banks of the Antipodes during the past few years, but there are some md; cations that the rate of progress is scarcely likely to be maintained at its recent level. The National Bank of New Zealand, for instance, had a successful year to March 31 last, and increased its net profit by some £53.300. At the time, the chairman had to confess at the meeting that it had not been an easy matter to expand the gross profits. Adverse factors of a temporary character were partly responsible, but lower prices for exports exerted a big influence. Bankers, like other business men, are constantly on the look-out for fresh fields to conquer, the more so at times whei. there are any signs of a check to existing activity. We have discussed a proposal by one of the New Zealand banks to undertake the granting of loans on land mortgages on a considerable scale. It seems that this suggestion may result in an Act of Parliament th-; banks powers to strike out in the same direction if they so desire. The measure is not yet pasged, but the directors of the National Bank of New Zealand will give the subject their "friendly attention." There is no apparent reason why such business should not be profitable, but it needs to be approached with even more than the traditional caution of the banker.