BANK CREDIT POLICY
Increase In Ratios The Reserve Bank has called up £8.4 million of the trading banks' funds, as from next Wednesday. The latest Gazette notifies an increase in the banks’ reserve ratios, from 23 per cent of demand liabilities plus 10 per cent of time liabilities, to 26 per cent plus 10 per cent respectively. A 1 per cent increase in the (demand liability) reserve ratio requires the banks to deposit with the Reserve Bank an extra £2-8 million. If the banks cannot find this sum from their own cash resources they are required to borrow the difference, at 7 per cent interest, from the Reserve Bank. The latest increase is the first since October 16, when the demand liability reserve ratio was raised from 22 per cent to 25 per cent of demand liabilities. It w’as reduced to 23 per cent on October 23. In the week ended October 30 the banks had to borrow £s.lm to maintain their statutory deposits, but by November 6 they had repaid all these borrowings.
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Press, Volume CII, Issue 30289, 15 November 1963, Page 17
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174BANK CREDIT POLICY Press, Volume CII, Issue 30289, 15 November 1963, Page 17
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