OVERDRAFTS DOWN

Press, Volume CI, Issue 29901, 15 August 1962, Page 21

OVERDRAFTS DOWN

Classification Of Advances Mainly because of reduced borrowing by wholesalers, manufacturers and retailers, advances by the trading banks in New Zealand tell £32m in the U months ended July 11, 19®. This is shown in the latest classification of trading bank advances from the New Zealand Bankers* AmftHMter) research directorate. “Lower stocks are mainly responsible for the drop in advances to wholesalers, retailers and manufacturers but sluggish'demand largely explains the fall in construction industry overdrafts. It is now more attractive for meat companies to borrow in Tendon than in New Zealand because of lower interest rates, hence the reduction in their local bank borrowing," the directorate says. "The currently liquid position of the New Zealand economy is reflected in lower bank lending to financial institutions. This also partly explains the drop in personal advances but another reason is Reserve Bank policy which accords such lending low priority.” Details ot advance* to the main classes of borrowers at July 11 this year, with the change over the previous 12 months are as follows: Advs. Change tm Cm Farming • ■ 33.4 nil Mining and quarrying .. 0.3 —O.l Manufacturing—freezing .. 19.3 —2.0 other .. 42.1 —4.4 Construction .. 83 —1.9 Power transport 4.1 nil Commercewholesalers .. 19.4 —4.5 retailers .. 17.2 —3.4 finance '.. 3.8 —2.6 other .. 12.3 —0.5 Personal .. 21.5 —2.3 Other .. 10.3 —0.7 Total .. 192.5 —22.4