Res. Bank statistics

Press, 5 September 1983, Page 21

Res. Bank statistics

Increases in trading bank credit limits were relatively moderate in July, according to the latest Weekly Reserve Bank statistics. Total credit limits grew 0.5 per cent in the month (seasonally adjusted) compared with the somewhat faster rate of 1.1 per cent recorded in June. Utilization of credit limits, at 69.4 per cent, remained almost unchanged from the level seen in June, although still significantly below the level of a year earlier. Total credit limits were 7.1 per cent higher in July than in the same month in 1982.

Private sector credit grew 0.7 per cent in July after allowing for seasonal

influences. This is a somewhat slower rate of growth than was recorded in June and brings the latest annual percentage change to 4.1 Cer cent. The growth in the road money measure, M 3, accelerated in the month and, in seasonally adjusted terms, represented a 2 per cent increase over June. The earlier month’s figure was affected by the flow of funds into Kiwi Savings Stock. M 3 has grown by 9.5 per cent during the year to July, 1983, a somewhat faster rate than that recorded in recent months.

New deposits placed with large finance companies in June were only slightly higher, at $147 million, than

withdrawals which totalled $146 million. Total net loans and advances outstanding at June were 13.6 per cent above the level of a year earlier, continuing the slowdown in annual lending rate growth which has been evident throughout this year. Stock and station agency company advances at June 30 were 6.2 per cent above the level of a year earlier. In the same period, however, total selected assets of these companies fell 4.4 per cent.

The value of commercial bills outstanding rose by less than 1 per cent in the year to June, 1983, much less rapidly than the growth recorded in the preceding twelve months.