TRADING BANKS’ RETURN

Press, Volume XCVII, Issue 28728, 28 October 1958, Page 17

TRADING BANKS’ RETURN

Demand Deposits Steady

The demand deposits of the trading banks of New Zealand were almost stationary during September. At the end of August the total was £ 230.6 m, and at the date of the latest return, September 24, the figure was £231.9m. This is slightly below the figure of a year ago, which was £ 237.9 m at the end of September. Time deposits were £2.Bm down at £ 43.0 m, but were still substantially higher than the figure of £ 35.7 m on the last Wednesday of September, 1957. During September the trading banks’ balance at the Reserve Bank fell slightly, from £ 58.4 m to £ 57.2 m, and the statutory minimum deposits at the Reserve Bank also fell slightly during this period. Trading bank borrowing, at 2.8 m, was less than the figure of one month previously. The volume of money on issue in New Zealand has scarcely varied at all during the last two months. The figure for the end of September, £ 306.6 m, is only £2.om above that for the end of August, and £2.om less than the figure of £308.6m in the return at the end of July. The June figure was £327m. At the end of September, 1957, the volume of money was £ 312.2 m. The return shows that the amount of available credit—the total of actual advances and discounts together with the total of unexercised overdraft facilities—was £ 170.5 m. This shows a fall of £2.Bm during the month of September, and is a further £2.Bm above the figure for this time last year. At £ 165.6 m, advances and discounts are still falling, though £6.om above the figure for the same time in 1957. The latest 1958 figure shows a total of £ 173.1 m on October 8 Principal items from the returns

are:— Demand deposits Sept., Aug. Sept., 1958. 1957. JEm. £m. £m. 231.9 230.6 237.9 Time deposits 43.0 45.8 35.7 Balance at R.B. .. 59.9 63.0 63.7 State Mine Dept. 57.2 58.4 54.1 T.B. borrowing .. 2.8 6.2 0.4 Vol. of money .. 306.6 304.6 312.2 Advances* 165.6 170.1 160.6 Unex. overdrafts 104.9 103.3 107.1 Net o’seas assets 10.0 6.1 12.0 •Includes discounts.