BANK RATIOS LOWERED
Provision For Tax Payments ( N.Z. Press Association) WELLINGTON. March 8. The Reserve Bank ■ today announced a reduction in the reserve ratios of the trading banks from 40 per cent, to 20 per cent, of demand liabilities (with no change in the ratio of 10 per cent, of time liabilities) to become effective from tomorrow. In a statement, the Reserve Bank said a temporary reduction in the reserve ratios is normal during March each year to enable the banks to cope with the flow of income tax to the public account at the Reserve Bank. Existing circumstances still require severe restraints on bank credit. The ratio reduction is therefore designed merely to offset the tax flow and not to reduce the present extent of trading bank borrowing from the Reserve Bank when the tax flow to the Government is complete by the end of this month. There is no change in the existing policy of credit restraint.
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Bibliographic details
Press, Volume CI, Issue 29767, 9 March 1962, Page 17
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159BANK RATIOS LOWERED Press, Volume CI, Issue 29767, 9 March 1962, Page 17
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