Advances By Banks Kept Steady

Press, Volume CIX, Issue 31920, 22 February 1969, Page 48

Advances By Banks Kept Steady

(N.Z. Press Association—Copyright) WELLINGTON, February 21. Bank advances were being kept steady despite continuing strong pressure for additional overdrafts, the New Zealand Bankers’ Association said in a statement today.

On January 29 total bank j advances stood at ssoBm an increase of s9m over the end! [of December figure. This was a smaller rise for the per- ; iod than in any of the three [ I previous years. Non-priority advances had.; recorded a normal seasonal;i decline since October and!; were only 4 per cent to 5 per!: cent above the levels of three! 1 years ago. Advances to priority sec- i tors such as farmers and meat i companies, were rising more j strongly than normal in No- i vember and December but I were steadier in January. Ceilings for bank advances s set by the Government called j for continued severe re- ( straint in non-priority bank;.

lending so as to minimise the usual seasonal rise in adivances over the next few months. “In the meantime reserve ratio policy continues to keep the banks ‘in the red,’ ” the statement said. Reserve Bank | penal borrowing at 7 per cent I amount to sllm as at January 29 and has since been raised Ito an average level of s2om. “On the deposits side, demand deposits in January were at similar levels to a year ago. while interest-bear-ing deposits were s24m higher at $229m. “Deposits in trading bank savings banks continue to grow steadily at approximately slm a week and now stand at $2851.1."

Trading bank statistics for January i$ million).— 31/1/68 31/12 '68 291-69 LIABILITIES— Deposits bearing interest 205 226 229 Deposits not bearing interest 559 0/3 561 Reserve Bank borrowing at 7% — 9 11 ■ ■ ■ 764 810 801 — — ASSETS— Till money 46 69 47 Reserve Bank balance . 86 55 69 Net overseas assets 38 46 57 Security holdings 83 89 89 Total liquid assets 253 259 262 Advances and discounts 451 499 508 Term loans (including special export finance) 23 23 Balancing items 38 29 8 ■ ■■ 764 810 801 — Unexercised overdraft authorities 306 302 295 Total credit limits 757 SOI 803 Total Savings Bank deposits 234 283 285