BANK ADVANCES FALL

Press, Volume LXXXVII, Issue 26511, 28 August 1951, Page 11

BANK ADVANCES FALL

REDUCTION IN CREDIT NEEDS

Aggregate advances and discounts by the Dominion’s six trading banks contracted by more than £11,000,000 during July to £121,428,391. The fall indicates a reduction in credit needs following the settlement of the waterfront dispute and a general tightening in controls on overdraft accommodation. The level, however. Is still £30,800,000 above that of a year ago. Total deposits declined by £3.500,000 from the June record to £265,836,911—the first downward movement since August, 1950. Demand deposits decreased by more than £6,000,000, but this was partly offset an increase of slightly more than £2,500.000 in fixed deposits. London assets rose by nearly £2,000,000 to reach a new peak of £43,765,998, while other overseas assets were £200,000 higher at £5,390,497. Total net overseas assets were £42,800,000, against £39,500,000 in June.

The principal items in the returns of assets and liabilities of the six trading banks at the close of business on Wednesday, July 23, are compared with those at June 27 in the following .table July June £ £ Circulation . 49,730,805 48,442,565 Free deposits .. 206,821,559 211,864,433 Fixed deposits .. 60,015,352 57,488,138 Advances .. 121.428,391 132.743.240

London assets *4L773£49 Notes of the Reserve Bank held as till money on July 25 were valued at £10,893,323, compared with £11.361,032 a month earlier. The Issue and active note circulation at the end of July for the last five years have been:—

Issue Circulation £ £ 1947 .. 47,179.913 40.327,874 1948 .. 47,953,024 40,534,422 1949 .. 50,605,102 42,265,746 1950 .. 54,721.664 45,229,670 1951 .. 60,624,128 49,730,805 A comparison of the aggregate deposits, advances and excess of deposits in July returns since 1947 is as follows: Deposits. Advances. Excess. £ £ £ 1947 .. 167,040,274 75,815,405 91,224,869 1948 .. 176,841,018 83,798,762 93,042,256 1949 .. 192,754,587 78,698.426 114,056,161 1950 .. 203,106.046 90,607.101 112,498,945 1951 .. 265,836.911 121,428,391 144,408,520 Fluctuations in the value of assets held abroad on account of New Zealand business as shown in July returns for the last five years have been:— London. Elsewhere. Total. £ f jp 1947 .. 12,642,414 4,838,048 17,480,462 1948 .. 18,255.482 3,025,135 21.280,617 1949 .. 19,216,009 4,887,678 24,103,667 1950 .. 19,445,165 4,240,599 23.691,784 1951 .. 43,765,998 5,390,497 49,156,495

Overseas liabilities on New Zealand acJuly totalled £6,348,750. against £7,472,926 in June. Subsidiary coin held on July 25 was valued at £1.431,599. compared with £1,549,460 a month earlier.