RESERVE BANK

Press, Volume CV, Issue 31017, 24 March 1966, Page 17

RESERVE BANK

Tax Payment Reflected

Overseas investments held by the New Zealand Reserve Bank dropped from £16.2m to £13.2m in the week ended March Iff. This section of New Zealand’s overseas assets has now fallen to its lowest level since March, 1960, when the figure was £11.7m.

However, sterling exchange holdings then stood at £59.4m. In the latest week current account and short-term bills totalled £20.1m. This shows a small improvement of £246,000 for the week. In the last eight weeks there has been a steady conversion in the bank’s over* seas assets from long-term investments to near-money holdings.

Some other major changes in the Reserve Bank figures for the week reflect the recent tax payment. Trading bank deposits with the bank are down from £62.2m to £15.7m, while State deposits rose by £12.9m to £26.6m. Government borrowing from the Reserve Bank was also reduced, and advances to the State are now £25.2m as against £61.7m the previous week. Reserve Bank investments in New Zealand Government securities, however, rose by £l.7m to £38.3m, the highest point in 12 months. The strain on the New Zealand banking system by the tax payment is also reflected in the considerable reduction in the statutory reserve ratios.

Business Personal

Mr W. Doran, manager for New Zealand of the Phoenix Assurance Company, Ltd., has been appointed group manager for New Zealand, of the Phoenix Group of companies and principal officer of the Provident Life Assurance Company on the retirement of Mr L. J. Murray as general manager of the Provident Life Assurance Company and the Provident Fire Insurance Company. Mr H. A. Parker has been appointed assistant group manager for New Zealand of the Phoenix Group of companies.

Bank N.S.W.—Steady interim ordinary dividend of 5 per cent is payable, on AprW 28, by the Bank of New South Wales, Ltd. Last year total dividend was 10 per cent.—(P.A.)