TRADING BANKS’ RETURN
EFFECTS OF RAISING RESERVE RATIO
DECLINE IN FREE BALANCES (New Zealand Press Association) WELLINGTON, January 20. A reduction in the free balances of trading banks held by the Reserve Bank is shown in the trading banks’ latest return, which shows their combined assets and liabilities at December 22, 1954. The trading banks’ statutory minimum reserves, raised on November 30, 1954, were less than £6,000,000 below the actual total of the four banks’ balances on December 22. Net overseas assets of the New Zealand banking system fell by more than £2,000,000 to £88,300,000 between November and the end of December. This item stood at more than £100,000,000 in December, 1953. Advances and discounts eased by nearly £3,000,000 to £166.100,000. Free deposits rose by more than £13,000,000 to £241,500,000. Principal items in the return are as follows:
RESERVE BANK RETURN
FALL OF £6,300,000 IN NOTE ISSUE
The note issue in New Zealand contracted sharply during the week ended January 12 as demands for holiday spending tapered off. The latest Reserve Bank return shows a fall of £6,300,000 to £71,900,000 during the week, compared with a contraction of £1,100,000 in the previous week. The issue reached a peax of £79.300,000 in the week before ChristAfter declining slightly in the previous week, the bank’s sterling funds resumed their seasonal recovery with a small rise of £344,000 to £49,500,000. The latest level is £11,500,000 lower than a year ago. Trading banks' deposits with the Reserve Bank expanded by £3,400.000 to £71,000,000, while State deposits rose by £ 1,500,000 to £12,300,000.
Dec. 22, Nov. 24, Free deposits £000,000. .. 241.5 £000,000 228.3 Fixed deposits .. 57.7 56.9 Stat. min. res. , 64.2 51.4 Balances at R.B. 70.1 65.5 Free balances 5.9 14.2 Unex. o/drafts. .. 112.0 112.1 Circulation .. 66.9 58.4 Advances .. 166.1 169.0 Net overseas assets .. 88.3 90.5
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Bibliographic details
Press, Volume XCI, Issue 27563, 21 January 1955, Page 12
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300TRADING BANKS’ RETURN Press, Volume XCI, Issue 27563, 21 January 1955, Page 12
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