Banks Seek Review Of Monetary Policy

Press, Volume CVIII, Issue 31728, 11 July 1968, Page 18

Banks Seek Review Of Monetary Policy

The banks sought a review of monetary policy not just for their own advantage but in the Interests of a more efficient financial structure and oetter use of monetary controls for general economic policy, said the research director of the New Zealand Bankers’ Association (Mr R. O. Smiliie) yesterday. He was addressing the monthly meeting of the Canterbury Manufacturers’ Association. Mr Smiliie said the banks believed it would help national efficiency if bank overdrafts were more readily available to meet the shortterm credit needs of industry. Overdrafts were flexible and low cost-and were more attractive than higher-cost

Mr Smiliie said the banks also believed that it would help national efficiency if bank term loans, mainly about five years were more readily available. They were flexible and well-suited to development of export and new domestic Industries. Greater savings bank mortgage lending to the farm and export sectors as well as for

housing would also help national efficiency. Mr Smiliie said that banks were not advocating that the control of credit be abandoned, but rather that the emphasis be switched from direct to indirect controls.