BANK ANALYSES 1954-55 OVERDRAFT MOVEMENTS

Press, Volume XCIV, Issue 28019, 13 July 1956, Page 17

BANK ANALYSES 1954-55 OVERDRAFT MOVEMENTS

A reduction of £5.1 million to £18.5 million in overdrafts of private individuals was the main contributing factor in the contraction of £6.0 million to £17.8.2 million in trading bank advances in the year ended March 31. Of the 25 categories of borrowers listed in the latest Reserve Bank bulletin, 18 show a reduction from a year before and seven show an increase.

As in the final quarter of 1955, freezing companies, meat companies and wool buyers showed marked increases in trading bank borrowing. Advances to the freezing works and meat companies at the end of March stood at £19.5 million, an increase of £5.7 million from a year before and £lO.l million higher than at the end of 1955. The latter sharp movement probably arises from seasonal causes. Borrowing by wool buyers, at £7.6 million at the end of March, was £2.1 million higher than a year before and £l.B million more than at the end of last year. The other five categories to show an increase were secondary industry (up £970,000 on the year to £29.5 million), importers (up £410.000 to £14.5 million), other merchants and wholesalers (up £214,000 to £4.5 million less than at the end of £364.000 to £750,000) and entertainment concerns (up £58,000 to £427.000). Advances to Farmers Down Advances to farmers contracted by £2.5 million during the year to £26.7

million, while those to stock and station agents were reduced by £289,000 to £2.9 million, which was £4 5 million), shipping companies (up 1955. Another notable reduction was the decline of £2.1 million to £5.1 million in advances to financial comoanies and societies. Advances to the main classifications of borrowers at the end of March in the last three years compare as follows: End March 1954 1955 1956

Totals .. 146,405 184.234 178,229 Advances for housing at the end of March amounted to £6.3 million (ordinary) and £690,000 (group housing).

(£000) (£000) (£000) Farmers .. 24,609 29,270 26,732 Meat coys., etc. .. 4,975 13.752 19,494 Wool buyers .. 4,176 5,461 7.574 Other prim. ind. 11,689 13,994 12,576 Other indust. .. 22,924 28.560 29,530 Merchants, etc. .. 14,848 19,322 19,946 Retailers .. 14,851 19.234 17.232 Transport .. 3,924 4,050 4,046 Local bodies .. 2,007 2,269 1,757 Stock and station agents 1,704 3.150 2,861 Finance coys. .. 5,879 7,201 5,069 Private persons .. 20,946 23.553 18,492 AU others .. 13,873 14,416 12,921