TRADING BANKS

Dominion, Volume 28, Issue 232, 28 June 1935, Page 14

TRADING BANKS

Position of Overseas Funds FIXED DEPOSITS HIGHER An increase in fixed deposits, a decline in free deposits, a decrease in the note circulation, a moderate advance in London funds, but a substantial decrease in overseas funds elsewhere are features of the monthly statement of assets and liabilities of the six trading banks in New Zealand showing ,the position as at the close of business on Monday, May 27, 1935. gazetted last night. _ Furnished in accordance with the provisions of the Reserve Bank Act. the statement shows the following aggregate figures in respect of the six banks :—

Note Circulation Lower. Since. April 29, when the last statement was made up, there has been a further decrease of £47,215 in the value of the trading banks’ own notes outstanding. The total stdod at £753,087 on May 27, as compared with £800,302 on April 29. and £6.220.241 at the date when the Reserve Bank notes began to replace the trading banks’ issue last year. The total active note circulation in the Dominion on May 27, made up of the outstanding notes of the trading banks and that part of the Reserve Bank issue in tlte hands of tile public, was £6,176,810, a decrease of £202.585, compared with the total of £6 379,395 on April 29. The position of the note circulation at April 29, compared with those at the dates of the earlier returns, was ae is shown in the following table:—

Movements in Deposits. The demand liabilities or current, account bulauces on New' Zealand of the trading banks amounted to £26,374,859 on May 27, a decrease of £720,475 since April 27 and a total decline of £1,299,006 since Majch 25, the total of £27.673,865 on the last-mentioned date being the highest figure of free deposits held by the trading banks since the Reserve Bank began business. The returns again show an increase, for the second time in succession in time liabilities or fixed deposits, which for the 8 months to March 25 had shown a progressive decrease. On May 27 the time liabilities of the trading banks stood at £35.885,504, an increase of £130,500 since April 29, and a rise of £430,801 _since March 27, when the total of £35,454,703 was the lowest for nine months. A comparison of the free and fixed deposits and the totals of the two since July 30. 1934, is as follows:—

The (jemaml liabilities elsewhere than in New Zealand in respect of New Zealand business totalled £322,459 on May 27, compared with £293.578 on April 29, an increase of £28.911. Time liabilities elsewhere than in New Zealand in respect of Neiv Zealand business totalled £874.858 on Jlay 27. compared with £845.31.8 on April 29. aii increase of £29.510. Position of Advances. The advances and discounts of the six trading banks in New Zealand on May 27 totalled £45.381.213, a decrease of £19.495 since April 29, when the figure of £45.400.708 was the highest shown since July 30, 1934. The relative positions of advances and deposits since that date are ns follow:— Excess of

The ratio of advances to deposits on May 27 was 72.8 S pec cent., compared with 72.23 per cent, on April 2'J. London Funds Higher. A further increase of nearly £500.000 ie shown in the banks’ London funds as at April 29, while other overseas assets in respect of New Zealand elsewhere' than in London show a decrease of £840,000. The totals of the trading banks’ overseas assets in respect of New Zealand business as shown by the monthly returns since July. 1934, are as follow:—

It is reported that negotiations are proceeding for the sale of certain properties owned by R. M. Realisation. Limited, and E. D. Realisation. Limited, the two com panics recently formed to realise the assets of the Royal Mall Steam Packet Company and Eider Dempster and Co., Limited. The prospective buyers have not yot been named, but It is understood that the deal will be a cash one. involving approximately £1,500.000. and that the properties concerned Include Royal Mail House, Leaden- . hall Street, B.C.

CREDIT. £ (a) Demand liabilities in New 26,374,859 (b) Time liabilities in New 35.885,504 (c) Demand liabilities elsewhere than in New Zealand incurred in respect of New Zealand busi322.480 (d) Time liabilities elsewhere than in New Zealand incurred in respect of New 874,S58 Zealand business (i) Notes of own issue in circulation payable in New Total 64,210,797 DEBIT. £ (e) Reserve balances held in the Reserve Bank of New Zealand 4.195,058 (f) Overseas assets in respect of New Zealand business— 18,746,113 (1) In London (2) Elsewhere than in 6,242,944 London (s) (1) Gold and gold bullion held in. New Zealand — (2) Subsidiary coin held in 794,101 New Zealand (h) Advances and discounts 45.381,213 in New* Zealand (1) Reserve Bank of New Zea3,878,370 Total 79,237.799

‘ T. Banks. £ 11. Bank. £ Total. £ July ;;o 6,220,241 — 6,220,241 Aug. 3,609,164 2,487,213 6,096 377 Sep. 24 2.71.6.064 3,467.607 6,183,671 Oct. 29 ■ 2.206,305 3 834,663 6.040,968 Nov. 26 1,846,297 4,242,473 6.088,770 Dec. 31 1,486,235 5,355,588 6,841 823 Jan. 28 1,043,443 5,043,487 6,086,930 Feb. 921,417 5,267,842 6,189,259 Mar. 854 640 5.382,889 0,237,529 Apr. 29 800.302 5.579.093 6,379,395 May 753,087 5,423,723 6,176,810

Free. £ Fixerl. £ Total. £ July SO 24.621,(506 40,592,374 65.218,980 Aug. 27 26.184,575 40,263,006 66,447,581 Sep. 24 25,771,320 39,586,720 65,358,040 Oct. 29 24,025:030 39.045,737 63.070,767 Nov. 26 23,835.044 38,065,565 61 900,609 Dee. 31 24,177,444 36,762,124 60,939,5(58 Jan. 28 25,856,510 36,444,416 62,300,926 Feb. 25 27.129,357 36,041,668 63,171,025 Mar. 25 27.673.865 35.454,703 (555,128,568 Apr. 2!) 27,095,334 35,755.004 62.850,338 May 27 26.374.859 35,885,504 62.260,363

Deposits. 4? Advances. Deposits. £ July 30 X 65,213,980 44.085,605 21.128,375 Aug. 27 C0.447.5S1 41.261.010 25,180.571 Sep. 24 65.358.040 41,603,073 23.754.907 Oct. 29 63.070.707 43.539.544 19.531.223 Nov. 26 61.900,609 44.417,637 17.482,972 Dee. 31 60.939.50S 44.903.506 16.036 062 Jan. 28 62.300.926 44.798.852 17,502.074 Feb. 25 63.171025 44,300.732 1.8.S70.293 Mar. 25 63.128,508 44.573.365 18,555,203 Apr. 29 G2.850.33S 45.400.708 17,449 630 May 27 62.200.363 45.381.213 16,879,150

London. Elsewhere. Total. £ £ £ July 30 8,821,53.8 8.359,977 17,181,515 Aug. 27 11,171,987 9,255,542 20,427,529 Sept. 24 7,751.171 9.129.611 16,880,812 Oct. 29 10,494,570 8,948,811 19.4 43,381 N or. 26 10.120,868 9,069,119 19,189.987 Dee. 31 10.618,328 8924,254 19,542,582 Jau. 28 12,234,355 7,897,234 20,131,589 Feb. 25 15.290,786 7,351.603 22 651,389 Mar. 25 16.605.200 7,312.980 23.918,180 Apr. 20 18,266.133 7.081,884 25,348,017 May 27 18.746.113 6,242,944 24.989,057