RESTRAINT ON LENDING

Press, Volume XCII, Issue 27699, 1 July 1955, Page 15

RESTRAINT ON LENDING

RESERVE BANK’S ACTION LENDING BANKS’ RATES RAISED (New Zealand Press Association) WELLINGTON, June 30. The Reserve Bank announced today that, in accordance with the current policy of keeping a firm restraint on the lending operations of trading banks, reserve ratios will be raised to 20 per cent, of demand liabilities and 7% per cent, of time liabilities. The change will take effect from July T, 1955. The present ratios are 16| per cent, and 7 J per cent, respectively. The effect of the higher ratios will be to increase from £44,200,000 to £52,700,000 the banks’ statutory minimum balances at the Reserve Bank, whereas the actual balances (after deducting borrowings from the Reserve Bank) were £43,500,000 on Wednesday. To make up the difference the banks will need to increase their borrowing from the Reserve Bank or elsewhere. The Reserve Bank also announced an increase in its minimum discount rate from 4 to 5 per cent., with effect from July, 1955.

CUSTOMS RETURNS HIGHER COLLECTIONS IN CHRISTCHURCH Customs and excise duty, collected by the Customs Department at Christchurch during June, 1955, was higher by £87,262 than in the corresponding month of last year. For the three-month period ended June 30 revenue collected for 1955-56 is £152,434 more than fcr the corresponding period in 1954-55. Detailed statistics, with those for the corresponding period in the previous yeai in parenthesis, are:— June.—Customs and excise, £376,939 (£289,677); petrol tax, £131,166 (£128,738/, tyres, £222 (£176); sales tax, £221,913 (£238,064); light dues, £603 (£1027); miscellaneous. £1176 (£232); total, £732,019 (£657,914). April-June. Customs and excise, £1,022,145 (£869.711); petrol tax, £412,710 (£374,423); tyres, £lll2 (£552); sales tax, £636,998 (£628,472); light dues, £2596 (£2584); miscellaneous, £4364 (£518); total. £2.079.925 (£1.876,260). AUCKLAND Revenue collected by the Customs Department, Auckland, during June, totalled £2,179,094, compared with £1,914,981 in June, 1954. Details are: customs, £920,238 (£720,268 in June. 1954); petrol tax. £451,846 (£494,928); tyre duty. £905 (£517); sales tax, £536,120 (£548,055); other duty, £269,985 (£241,213). Collections for the first half of 1955 totalled £12,493,801, compared with £10,720,404 for the first six months of 1954.—(P.A.)