Aust. bank deposits rise again

Press, Volume CXV, Issue 33742, 15 January 1975, Page 16

Aust. bank deposits rise again

(New Zealand Press Association—Copyright)

SYDNEY.

Deposits with Australian trading banks expanded strongly in December for the third month in succession, the Reserve Bank reports.

A rise in deposits of about s4oom to $12,500m is indicated by the banks statement for die week to January 8, which shows a $12.1m in-

crease to $381.8m in the Statutory Reserve Deposit accounts of the trading banks.

The accounts are adjusted on the second Wednesday of each month, and are currently based on 3.0 per cent of the trading banks total deposits. The banking statistics for December could show a further sharp recovery in the rate of new lending when they are released next week. In November, trading bank deposits increased s3l9m or 2.8 per cent to $12,119m, the rise coming from fixed deposits, including Certificates of Deposit.

Advances increased s76m or 0.84 per cent to $9169m, and the weekly rate of newlending nearly doubled to s7sm.

In October, deposits rose $552m and advances s32Bm, but new-lending was almost steady at s3B«n a week. The latest Reserve Bank return also shows that the private sector was a large buyer of Treasury notes and short-term bonds for the fourth week in succession.

The Reserve Bank holdings of Australian Government securities dropped $66.7m to $873.9m in the latest week after a decline of $100.2m in the fortnight to January 1, and a drop of $151.4m in the week to December 18.

The trading banks have been large buyers of Treasury notes in recent weeks to expand their lending-base. The Reserve Banks holdings of gold and foreign exchange fell again in the latest week by $80.4m to $297.4m. after a s4Bm decline in the two weeks to January 1. There was a further flowback of sl46m of Australian notes on issue, reducing them to $2465.9m. The preChristmas peak was $2758.6m on December 18.