Bank lending rose 21.4 p.c.

Press, 26 February 1980, Page 18

Bank lending rose 21.4 p.c.

Trading bank deposits rose 22.6 per cent to $5158 million, and lending 21.4 per cent to $3592 million in the year to January 31, the New Zealand Bankers’ Association says in a statement. ‘ _ This allowed the liquidity ratio to improve from 30 per cent in January, 1979, to 31.3 per cent last month. Bank liquidity ratios are at their normal level for this time of -the year, with banks and their customers readying themselves for March tax payments, the savs.

Credit limit use, of 75.6 per cent (70.5 per cent in January, 1979) was at a relatively high' level, reflecting the high demand for bank finance largely arising from businesses’ need to finance substantially higher stock values, and other workingcapital requirements. “A further reason is that total credit limits have only risen 13 per cent to $4749 million over tfie last year, in line with official policy directives as compared with 29 per cent, to $4198 million in the year ending January, 1979,” the statement says..