Reserve ratios reduced
The reserve-asset ratios for trading banks for September have been reduced by the Reserve Bank to allow for financing the September tax-flow from the private sector to the Government. The ratios, announced by the chairman of the bankers’ association (Mr W. J. Gough) are 15 per cent of demand deposits compared with 24 per cent for August, and 12 per cent of time deposits, compared with 15 per cent. The ratios determine the amount of funds the trading banks must keep in Government securities. They are set by the Reserve Bank. Mr Gough told NZPA that the cuts for September were to cover the tax drain, and there was no basic change in money policy.
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Press, 30 August 1977, Page 26
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118Reserve ratios reduced Press, 30 August 1977, Page 26
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