TRADING BANKS

Dominion, Volume 28, Issue 286, 30 August 1935, Page 10

TRADING BANKS

Decrease in London Funds

DEPOSITS AND ADVANCES

A sharp rise in advances, a substantial decrease in free deposits, an increase in fixed deposits, and a decrease in London funds, are the principal 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, Juiy 29, 1935. Furnished in accordance with the provisions of the Reserve Bank Act, 1933, the statement, which was gazetted last night, shows the following aggregate figures in respect of the six banks: — CREDIT.

(a) Demand liabilities in New Zealand 25,196,141 (b) Time liabilities in New Zealand 35.990,554 (c) Demand liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 512,229 (d) Time liabilities elsewhere than in Now Zealand incurred in respect of New Zealand business 1,137,064 (0) Notes of own issue in circulation payable in New Zealand 631,639 Total £63,518,227 DEBIT. £ (e) Reserve balances held in the Reserve Bank of NewZealand ... 4,258,432 (f) Overseas assets in respect of New Zealand business- — fl) In London 18.634,034 (2) Elsdwhet-e than in London 5,807,953 t'g) fl) Gold and gold bullion held in New Zealand —— (2) Subsidiary coin held in New Zealand ' 675,449 (h) Advances and discounts in Next Zealand 45,899,615 (i) Reserve Bank of NewZealand notes 3,430,914 Total £78.112,397 The total active note circulation,in the Dominion on July 29. intide tip of the outstanding notes of the trading banks and that part of the Reserve Bank ts.-ue in the hands of the piiblic; wits £6,093.466, a decrease of £13.494, compared with the total of £6,106,960 on June 24. Since June 24. when the last statement was compiled, there has been a further decrease of £28.429 in the value of the trading banks’ own notes outstanding. The total stood at £681,639 on July 29, compared with £710,068 on June 24 and £6.220,241 when the Reserve Bank notes began to replace the trading banks issue in August, 1934 The position of the note circulation at Jtily 29; compared with that at the dates of the other rettii-ns issued during the twelvb months, was as is shown iii the following table:—

Movements in Deposits. The demand liabilities, or current account balances in New Zealithd of the trading banks on July 29, amounted to £25,196,141, a detrc-ase of £725,757 sinceJune 24, and a total decline of £2,477,724 since Mareh 25, the total of £27,673,865 on the last-mentioned date being the highest figure of free deposits add by tho trading banks during the last twelve months. An increase of £164,021 is shown in the trading banks’ time liabilities, or fixed deposits in New Zealand. Ute total on July 29 being £35.990,554. During the eight months to March 25, fixed d*posits showed a progressive decline. There was an , inci'Case during April and May, a stnhll decline in June, and an increase in Jtily, the net iiicrcase froin March 25 to July 29 being £535.851. Fixt'd deposits on July 29 were, however, £4.601,829 less than the total on July 30, 1934. A comparison of the free anti fixed deposits and the totals of the two at intervals since July 30, 1934, is as follows: Fret*. Fixed. Total. 1934. ' £ £ •£.

The demand liabilities of tlie trading banks elsewhere tiiaii in New Zea'and iii respect of New Zealand bU'-'ness totalled £512.229 on July 29. compared with £379.330 on June 24, ini increase of £132.899. Time liabilities el.-»nhere than in New Zealand in respect vi New Zealand business totalled £1.137,664 on July 29. computed with £906,478 oil June 24, an increase of £231.186. Increase in Advances.

The advances and discounts of the six trading banks iii New Zealand as at .Tilly 29 stood at £45.899,615, the Highest figtire shown since July 30. 1934. the previous high level being £45,400,708 ou April 29 last. Advances and dlsectintS decreased by £228.524 between April 29 and June 24, the total ou the latter date being £45.172.184. BhtWbeii Jiiiit 24 and July 29. however, advances ana discounts increased by the large amount of £727,431. The relative positions of advances and deposits at different periods since July 30. 1934, are shown in the following table: — Excess of Deposits. Advances. deposits. 1934. £ £ £

July 29 61.186.695 45.899.615 15.287 080 The ratio of advances to deposits on July 29 was 75 015 per cent, compared with 73.15 per cent, on June 21. and 72.88 per cent, on May 27. Overseas Funds Lower. A sharp decrease of £645,760 since June 24 is shown in the trading banks’ London funds, which stood at £18.1,34.034 on July 29. Other overseas as.-ets In respect of New Zealand business held elsewhere than in London on July 29 totalled £5.807,953, a decrease of £5891 since June 24 and a decline of £134.991 since May 27 The totals of the banks’ overseas akSets in respect of New Zealand business ns shown by the monthly returns since July 30. 1934. compare as follow:—

T. Banks. It. Bank. Total. £ £ £ July 30 6,220,241 — 0,220,241 Aug. 27 3,609,164 2,287.213 6,096,377 Sep. 24 2,716,004 3,467.007 (1,183,671 Oct. 29 2,206,305 3,834,063 0,040,968 Nor 2(j 1,846,297 4.242,473 11,088.770 Dee. 31 1.486,235 5.355,588 6,841,823 J tin. 2S 1,043,443 5.043,487 6,086.930 Feb. 921,417 5.207,842 6,189.259 Mar. 854,640 5.382.88!} 0,237.529 Apr. 29 800,302 5,579,093 0.379.395 May 27 753,087 5,423.723 0,176.810 Jne. 24 710,068 5,390,892 6,100.960 July 29 081.639 ( 5,411.827 0,093.406

July 30 24.621,600 40.592,374 65,213.980 Oct. 29 24,025,030 39,045,737 63,070.767 193. . Jan. 28 25.856.510 36,444,416 62,300.926 Feb. O'! 27,129.357 36,041,668 03,171.025 JIar. 25 27,073,865 35,454,703 63,128,508 Apr. 29 27,095.334 35,755.004 62,800,338 May 27 26.374.859 35,885.504 02,236,363 J ni>. 21 25,921.808 35.826,533 61.718.431 July 20 25,196,141 35.090,554 01,186.695

July 80 05.213,980 44,085.005 21.128.375 Oct 29 03,079,767 43,539,544 19.531,223 1935. Jan. 28 02.300.920 44,798,852 17 502.074 Feb. 25 63.171,025 44,300,732 18.870;293 Mar. 25 63,128,508 44,573,305 18.555.203 Apr. 29 02.850.338 45.400.708 17 449,630 May 27 62.200,363 45,381.213 16.879,150 .Tne. 24 61.748,431 45,172,184 10,576,247

London, 1 Klsewhere, Total. 11)34. £ £ £ July no 8.821.538 8,359.977 17.181.515 Atifj. 27 11.171.987 9.255 542 20.427.529 Sept. 24 7.751.171 9.129.641 16.880.812 Oet. 29 10.494,570 8.948.811 19.413 381 Nov. 2G 10,120.868 9.069,119 19,189 9«7 Dec. 31 10.618.32.8 S.921,254 19,542.582 1935. .Tan. 28 12.234.355 7.S97.234 20131,589 Feb. 25 15.299.786 7,351.60.3 22,651 389 Mar, 25 16.605.200 7,312,980 23.018 180 Apr. 29 IS,266.133 7.081.884 25,318.017 May 27 18,746.113 6.242.944 24.9«9,057 June 24 18.682.794 5.813.844 24,496.638 July 20 18,034,034 5,807,933 23,841,987