SOUND POSITION.

Auckland Star, Volume LXVII, Issue 139, 13 June 1936, Page 14

SOUND POSITION.

DOMINION'S TRADING

STRENGTH OF BANKS,

(By Telegraph.—Own Correspondent.)

WELLINGTON, Friday

Stating that the year's trade iigUres disclosed a sound position, the chairman of the Bank of New Zealand, speaking at the annual meeting in Wellington to°day, added that the amount of assets held "in London by the trading banks would enable them materially to extend their lending operations in the Dominion. The values of both exports and imports were higher by approximately £4,000,000 sterling, the excess of exports, £9,828,000, being sufficient to meet all overseas commitments, the chairman said. Exports and imports in sterling tor the past live years were as follow:—

The average total trading bank deposits for the March quarter amounted to £05,599,000, an Increase of approximately £4,500,000 as compared with the March quarter of-the previous year. Free deposits accounted for

£3,220.000 of this increase. Advances showed an increase of £2,028,000 for the same period. The total trading banks' balances with the Reserve Bank at March 30 amounted to £8,937,018, or say £5,000,000 in excess of the statutory balance required to be deposited. In addition, they held in London assets in connection with the New Zealand business aggregating the sum of £14,143,309 (New Zealand). The trading banks were therefore in a position to materially extend their lending operations in New Zealand. The London funds of the Reserve Bank of New Zealand and the funds of the trading banks held in London relative to their New Zealand business, together amounted to over £38,000,000 in New Zealand currency —a position of considerable strength.

Excess of Yenr to Exports. Imports Exports. Mnr. 31. £ £ £ 1932 . 30,857,000 22,510,000 S,347,000 1933 . 32,077,000 22,049,000 10,028,000 3934 . 30,834,000 20,908,000 15,920,000 1935 35,985,000 20,082,000 9,903,000 1930 . 39,900,000 30,072,000 9,828,000