Seasonal rise in bank deposits

Press, 28 March 1979, Page 24

Seasonal rise in bank deposits

Trading bank deposits at the end of February showed the usual seasonal build-up, preparatory to the payment of income tax on .March 7, according to the monthly statement from the New Zealand Bankers’ Association.

Interest bearing deposits increased S69M during February (SSIM in 1978) and non-'interest-bearing deposits increased SI4OM (SII6M in 1978). Deposits with the banks’ savings banks usually show some downturn late in February, also in response to tax payments, and growth was only SSM during the month.

Trading bank lending increased more sharply in February 1979 (by S3SM) than was the case last year <$BM). Total liquid assets increased SIS6M (last year SBSM).

The announced tightening! of monetary policy began to| affect the trading banksr from March 1, and February statistics may have been influenced by preparations to meet the tightening. There! was some upward pressure) on interest rates. Having re- 1 spect to the tighter policy) and to the tax payments, the < March Reserve Asset Ratios were set at 20 per cent for) time deposits, and 32 per) cent for demand deposits.