TRADING BANKS

Dominion, Volume 29, Issue 150, 20 March 1936, Page 14

TRADING BANKS

Deposits High; Advances Down INCREASE IN LONDON FUNDS Increases in free and fixed deposits, a further substantial decline in advances and discounts, a decrease in the note circulation, anil a large increase in Loudon and other overseas funds, are the main features of the monthly statement of the assets and liabilities of the six trading banks in New Zealand, as at the clooe of business on Monday, February 2-1. Furnished in accordance with the provisions of the Deserve Bank Act, 1933, the statement, which was gazetted last night, shows the following aggregate figures in respect of the six banks: — CREDIT.

Overseas Funds Increase. The latest returns show an increase of £1,885,836 in the overseas funds held by the trading banks in respect .of New Zealand business, compared with the total on January 27. Realisations on the increasing flow of exports during the busy season are increasing the banks’ London funds, which at February 24 stood at £12,725.268, an increase of £1,575,389, compared with £11,149.879 ou January 27. Overseas funds held elsewhere than in London on February 24 stood nt £6.493,639, an increase of £310,447. The totals of the trading banks’ overvens assets in respect of New Zealand business as shown in the monthly returns since July 30. 1934, compare us follow: — London. Elsewhere. Total.

Note Circulation. The total of the note circulation in the Dominion on February 24 was £6,917,414, n decrease of £587,211 since January 27. Trading banks’ own notes still outstanding at February 24 amounted to £560,059. a decrease of £11,709 since January 27. The position of the note -.irculntion at February 24, compared with that at the dates of other returns issued since July, 1934, was as shown in the following table:—

lincrease in Deposits. Demand liabilities in New Zealand, or current account balances at February 24, totalled £30.469,321, an increase of £1,641,406 since January 27. The upward movement in free deposits lias continued since the October returns and is the highest figure shown since July, 1934. Time liabilities, or lived deposits, in New Zealand at February 24, totalled £37,160,745, an increase of £127.138 since January 27. The total is the. highest shown since the end of 1934. A comparison of the free and fixed deposits and the totals of the two at intervals since July 30. 1934. is as follows:—

Demand 'liabilities elsewhere than in New Zealand in respect of New Zealand business on February 24 totalled £448.878. n decrease of £36,817 since January 27. Time liabilities elsewhere than in New Zealand in respect of New Zealand business on February 24 were £667.673, an increase of £12,274. , . Deserve Bank balances held bv the trading banks on February 24 totalled £10.663.242. compared with £10,217.348 on January 27. an increase of 1415..894. The item. New Zealand business; excess of assets over liabilities on Feorimry 24, was £16.188.919, eomnared with £16.96’3.■194 on January 27. a dcriea.-e ol £777.575. Advances Still Decreasing. Advances and discounts iu New Zeii-l.-I'..d on February 24 totalled £44,760,539, compared .with £45,649,334 on January 27, a decrease of £888,795, and a net decrease of £2,950.954 since September 30, 1935, at which date the total of £47,711,493 was the highest level touched since July. 1934. The relative position ot alliances and deposits at different periods since July 30, 1934, are shown in the following

The excess of deposits over advances, at. £22.867,527 is the highest shown since July. 1934. > The ratio of advances to deposits oi. February 24 was 66.154 per cent., compared with 69.311 per cent, on January 27 and 72.416 per cent, on December 30.

£ (a) Demand liabilities in New Zealand *30,469,321 (b) Time liabilities in New Zealand 37,160,745 (e) Demand liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 44S.S7S (d) Time liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 667,673 (j) Notes of own issue in circulation payable in New Zealand 560,059 (in) New Zealand business — Excess of assets over liabilities 16,188,919 Totals 85,495,595 ■ ’Includes transfers from the long-term mortgage fund, Bank of New Zealand, of £301,179. DEBIT. £ (e) Reserve balances held in the Reserve Bank of New Zealand 10,663,242 (f) Overseas assets in respect of New Zealand business — (1) In London 12,725,268 (2) Elsewhere than in London 6,493,039 (g) (1) Gold and gold bullion held in New Zealand 5S3 (2) Subsidiary’ coin held in New Zealand .. 761,153 (h) Advances and discounts in New Zealand 44,760,539 (i) Reserve Bank of New Zealand notes ........ 3,497,231 (k) Securities held in New Zealand— (1) Government 4,785,764 (2) Other than Government 307,129 (l) Value of land, buildings, furniture, fittings, and equipment held in New Zealand 1,501,042 Totals 85,495,595

1934. £ £ £ July 30 8,821,538 8,359,977 17,181,515 Dec. 31 10,618,328 8.924.254 19,542,582 1935. JIar. 25 16,605.200 7.312,980 23,918,180 June 24 18,682.794 5.813,844 24,496.638 Sept. 30 16,206,526 5,672,475 21,879,001 Dec. 30 9,754,717 6,O2S,133 15,782,850 1036. Jan. 27 11,149,879 6,183,192 17,333.071 Feb. 24 12,725,268 6,493,639 19,218,907

T. Ba nits. K. Bank. Total. 1934. £ £ £ July 30 6,220,241 —-. 6,220,241 Dee. 31 1,486,235 5,355,588 6,841,823 1935. Jan. 28 1,043,443 5,043,487 6,086.930 Alar. 25 854,640 5,382,889 6,237,529 July 29 681.639 ■ >,411,827 6,093,466 Sep. 30 632.5S4 5.860.257 6.492,841 Dec. 30 5S4.66S 7.029,286 7.613.954 1936. jfiu. 27 571,768 6.932.S57 7.504.625 Feb. 24 560.059 6.357,355 6.917,414

Free. Fixed. Total 11)3-1. £ £ £ July 30 24.621,606 40.592,314 65.213.080 Oct. 29 24.025.030 39.045.737 6:’,,070.767 1935. Jan 28 25.856.510 3Ci.444.41H 62.300.92C Mar 25 27.673.865 35.454,703 63.12».5lb May 27 26.374.S5O 35.SS5.504 62.260.363 Sep SO 24.635.039 36 750.637 61.3S5.67G Dec. "0 ‘17.167.633 37.135.850 r4.363.483 1930. Jan. 27 2S.S27.915 37.033.607 65,861.522 Feb. 24 30.469.321 37.160,745 61.630,066

table:— Excess of Deposits Advances deposits. 1934. £ £ £ July 30 65,213,OSO 44,085,005 21,128,375 Oct. 29 63.070,767 43,539,544 19,531.223 1935. Jan. 28 62,300,926 44,798,852 17,502,074 Mar. 25 63.128.563 44,573,365 18.555,203 June 24 61.748,431 45,172,184 16.576,247 Sep.' 30 61,385.676 47,711,493 13,674,183 Dec. 30 64,303,483 46,506,378 17.737,105 1930. Jan. 27 65,801,522 45,649,334 20,212.18S Feb. 24 67,630,066 44,760,539 22,809,527