“Lending restraint for some time to come”

Press, Volume CXIV, Issue 33653, 1 October 1974, Page 20

“Lending restraint for some time to come”

Bank deposits rose $2l million during August, preparatory to income tax payments in September, according to the monthly statement from the New Zealand Bankers Association.

Growth in interest-bearing deposits (sl3m) continues to be stronger than growth in non-interest-bearing deposits (sBm). The level of deposits (with the banks’ savings banks was unchanged, comipared with the end of July. On the lending side, utilisation of credit limits remains very high, nearly 75 per cent. During August, advances and discounts increased by s7m, roughly half the rate in August 1973. ’Term loans increased by :s4m, or roughly one fifth of the rate in August 1973. In August total credit limits in- ! creased by slBm compared , with s67m last year, and is33m the previous year. The developing pattern of credit limits is that established limits are being re-]

duced or cancelled faster than new limits are being established. Probably the September tax payments will, however, lead to a trend towards the customary seasonal increase. Even so, lending conditions must be towards restraint for some time to come, the statement says. Correction Haywrights, Ltd, are paying a final dividend of 41 per cent for the year to July 31; an interim dividend of 4| per cent was paid in April, making a total of 9 per cent — as forecast in the halfyearly report — compared with 8 per cent last year.