Fixed deposits keep rising

Press, 29 August 1978, Page 20

Fixed deposits keep rising

As in June, the growth ini trading-bank deposits during July was wholly concern! trated among the interestbearing deposits, there being a slight reduction in non-interest-bearing deposits, said the New Zealand; Bankers’ Association in its ’ monthly statement, reports the Press Association. Total deposits increased SB7M, compared with SIIM in July last year, j In a large part this strong growth of deposits is reflected by S9SM increase in lending during July. This compares with a growth of only SIM in lending during July, 1977, when growth of deposits was also slower. It was expected that

growth of deposits, lending, and liquid assets would all be affected in July this year by payments to farmers in respect of the Budget’s provisions for livestock but only a comparatively small amount was reported to have been paid out in July and it now appears that the August figures will be more strongly influenced by these payments. Some tightening of bank liquidity was experienced at the end of July.

The Government’s recent announcement of higher ratios on interest-bearing term deposits and of a reduced margin of surplus reserve assets comes into effect in September and serves as an early warning of the forthcoming position. Growth of savings deposits during July was SI6M, compared with S7M in July, 1977, and thus maintains the record of recent months of about double the growth rate registered last year.