TRADING BANKS’ RETURNS

Press, Volume LXXIV, Issue 22593, 24 December 1938, Page 14

TRADING BANKS’ RETURNS

OVERSEAS ASSETS STILL FALLING FURTHER INCREASE SHOWN IN ADVANCES Another substantial decline in the net overseas funds, a continued contraction of deposits and a further increase in advances which are running at the abnormally high ratio of 93.709 per cent, to deposits, are the principal features of the monthly summary of assets and liabilities of the six trading banks in New Zealand as at Monday, November 28. 1938. Furnished in accordance with the provisions of the Reserve Bank Act, 1933, the statement shows the following aggregate figures in respect of the six banks:—

Further Decline in London Funds Another substantial decline is shown in the banks’ overseas funds. London funds on November 23 amounted to £3,686,111. as against f 4 ° n October 31, a decrease of Overseas funds in respect of New Zealand business held elsewhere than in London on November 28 totalled £2,367,067. compared with £2.52U.4DJ. on October 31. a decrease of £153.384. Total overseas funds, in London ana elsewhere on November 28, amounted to £6.053,178. compared with £6 635.546 on October 31, a decrease of £582.368. Against the total funds, however, there were on November demand and time liabilities overseas amounting to £2,980,239, thus reducing the net overseas assets of the trading banks to £3,072,939 as against £4,155,675 on October 31, a decline of £ 1 082 736 The ’ totals of the trading banks’ overseas assets in respect of New Zealand business, as shown m the monthly returns, compare as follows: —

Deposits Still Decreasing Demand liabilities, or current account balances of the six trading banks in New Zealand at November 28, totalled £32,707,151, as against £32,892,933 on October 31, a decrease of £185,782. J Time liabilities, or fixed deposits, in New Zealand as at November 28. amounted to £30.154,592, compared with £30,308,998 on October 31, a decrease of £154,406. .. The total of demand and time liabilities in New Zealand as at November 28 was £62,861,743, compared with £63,201,931 on October 31, a decrease of £340,188. Jt , A comparison of the trading banks demand and time liabilities and the totals of the two is as follows: —

Demand liabilities elsewhere than in New Zealand in respect of New Zealand business on November 28 amounted to £2,423,486, compared with £2,158,020 on October 31, an increase of £265,466. Time liabilities elsewhere than in New Zealand in respect of New Zealand business on November 28 amounted to £556,753, as against £321,851 on October 31, an increase of £234.902. The total of demand and time liabilities overseas in respect of New Zealand business on November 28 was thus £2,980,239, as against £2,479,871 on October 31. an increase of £500,368. The item New Zealand business, excess of assets over liabilities, on November 28 stood at £19,825,939, compared with £19,339,389 on October 31, an increase of £486,550. Reserve balances of the six trading banks on November 28 totalled £5,129,615, compared with £4,793,361 on October 31, an increase of £336,254. Government securities held by the trading banks on November 28 totalled £8,612,679, an increase of £349,043. Other securities at £269,764 showed no change. Advances Again Increase A further increase is shown in the aggregate advances in New Zealand of the six trading banks. On November 28. they amounted to £58.225,678, compared with £57,918,600, on October 31, an increase of £307.073. Aggregate discounts in New Zealand on November 28 amounted to £681,955, as against £811,051 on Oc- ;

Liabilities £ (a) Demand liabilities in *32,707,151 New Zealand (b) Time liabilities in New 30,154,592 Zealand (c) Demand liabilities elsewhere than in New Zealand incurred in respect 2,423,486 of New Zealand business (d) Time liabilities elsewhere than in New Zealand incurred in respect 556,753 of Ndw Zealand business (i) Notes of own issue m circulation payable in New Zealand — (ml New Zealand business —Excess of assets over 19,325,939 liabilities Total £85,667,921 •Including transfers from Bank of New Zealand’s long-term mortgage fund of £438,795. Assets £ (e) Reserve balances held in the Reserve Bank of 5.129,615 New Zealand Cf) Overseas assets in respect of New Zealand business — 3,686,111 (1) In London (2) Elsewhere than in 2.367,067 London , •• (g) (1) Gold and gold bullion held in New 89 Zealand • • (2) Subsidiary coin held 815,221 in New Zealand (h) Aggregate advances in New Zealand 58,225.678 (h) A rfprrpcratfi discounts 681,955 in New Zealand (i) Reserve Bank of New 4,026,967 Zealand notes _ • • (k) Securities held in New Zealand— (1) Government 8,612,679 (2) Other than Gov269,764 ernment (1) Value of land, buildings. furniture, fittings. and equipment held in New Zealand 1,852,775 Total £85,667,921 (hh) Aggregate unexercised overdraft authorities .. £20,423,115

London. Elsewhere. Total. 1936. .Tan 27 £ 11,149,879 £ G.183,192 £ 17,333.071 June 29 17,316.659 5,900,334 23,216,993 Dec. 28 7,907,916 5,373,730 13,281,646 1937. .Tan 25 7,361,885 5,221,770 12,583,655 Mar. 29 11,043,114 5,442,104 16,490,218 June 28 12,174,139 5,027,435 17,201,574 Sep. 27 8,147.276 4.225,095 12,372,371 Dec. 27 5,199,776 3,637,900 8,837,676 1938. .Tan. 31 5,739,073 3,439,731 9,178,804 Mar. 28 7,462,020 1,200,290 11.662,310 June 27 8.308,799 3,054,151 11,362,950 Sep, 26 4,657,743 2.718,117 7,375,860 Oct. 31 4,115.095 2.520,451 6,635,546 Nov. 28 3,686,111 2,367,067 6,053,178

Demand. Time. Total. 1336. £> £ £ 27 28,827,915 37,033,607 65,861,522 Jun. 29 30,805,731 36,066,713 66,872,444 Dec. 28 31,080,367 33,123,748 64,204,115 1937. Jan. 25 35,020,901 32,949,080 67,969,981 Mar. 29 36,898,151 31,974,736 68,872,887 Jun. 28 36,052,543 32,947,959 69,000,502 Sep. 27 32,890,247 33,051,072 65,941,319 Dec. 27 33,575.027 32,091,871 65,666,898 1938. Jan. 31 36,186,259 31,631,658 67,817,917 Mar. 28 37,006,216 31,224,667 68,230,883 Jun. 27 35,062,662 31,108,048 66,170,710 Sep. 26 32,927,965 30.495,768 63,423,733 Oct. 31 32,892,933 30,308,998 63,201,931 Nov. 28 32.707,151 30,154,592 62,861,743