TRADING BANKS

Dominion, Volume 31, Issue 153, 25 March 1938, Page 14

TRADING BANKS

Further Rise In Overseas Funds ' INCREASE IN ADVANCES Deposits Move Upward A further increase in overseas funds, an increase in free deposits, another small decrease in lixed deposits, n rise in advances and a higher note circulation are tlic principal features of the monthly statement of, the assets and liabilities of the six trading banks in New Zealand as at Mondav, February 28, 1938. 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:

An increase of £951,545 is shown in the trading banks’ London funds which, on February 28, totalled £6,690,618, as against on January 31. Overseas funds in respect of New Zealand business held elsewhere than in London on February 28 amounted to 3,881,127, compared with £3,439,731 on January 31, an increase of £441,396. Total overseas funds, London and elsewhere, held by the trading banks on February 28 were £10,571,745, as against £9,175,804 on January 31, an increase of £1,392,941, due to realisations on exports. The totals of the trading banks’ overseas assets in respect of New Zealand business, as shown in the monthly returns, compare as follows : — London. Elsewhere. Total.

A further increase of £289,270 is shown in demand liabilities, or current account balances, which total £36,475,529, as acainst £36,186,259 on January 31. ''Time liabilities, or fixed deposits, in New Zealand on February 28 totalled £31,371,406, as against £31,631,658 on January 31, a decrease of £260,252. The total of demand and time liabilities in New Zealand at February 28 was £67,846,935, compared with £67,817,917 on January 31, a net increase of £29,018. A comparison of the trading banks’ demand and time liabilities and the totals of the two is as follows: — Demand. Time. Total.

Demand liabilities elsewhere than in New Zealand in respect of New Zealand business on February 28 were £1,865,134, as compared with £1,974,729 on January 31, a decrease of £109,595. Time liabilities elsewhere than in New Zealand on February 28 amounted to £437,298, as against £449,301 on January 31, a decrease of £12.003. The item New Zealand business excess of assets over liabilities stood at £16,740,951 on February 28, compared with £17,400.216 on January 31, a decrease of £659,265. Reserve balances of the six trading banks on February 28 totalled £8,168,869, as compared with £9,805,163 on January 31, a reduction of £1,636,294. Government securities held by the trading banks on February 28 amounted to £7,674,517.' compared with £7,768,965 on January 31, n decrease of £94,448. Other securities nt £278,420 show no change. Increase P Advances. Aggregate advances of the trading banks in New Zealand on February 28 amounted to £52,773,060, as against £52,674.581 on January 31, an increase of £98.479. Aggregate discounts at the latest date were £687,335, compared with £638.469 on January 31, an increase of £48.866. The total of advances and discounts on February 28 was £53,460,395, ns against £53.313,050 on January 31, an increase of £147.345. The excess of demand and time liabilities over aggregate advances and discounts on February 28 was £14,386,540, compared with £14,504,867 on January 31. The relative positions of advances and deposits nt different periods is shown in the following table:—

The ratio of advances and discounts to total demand and tamo liabilities on H'cb-

ruary 28 was 78.795 per eent., compared with 78.612 per cent, on January 31, 82.389 per cent, on December 27, 84.348 per cent, on November 29, 80.225 per cent, on October 25, 76.880 per cent, on September 27, and 69.145 per cent, on June 2S. The lowest point was ;>.>.9.> per cent., in August, 1934. The aggregate unexercised overdraft authorities on February 28 was £24,396.286, as against £24,140,438 on January 31. The total of advances and discounts and unexercised overdraft authorities nt the latest date was £77,856,081, as compared with £77,453,488 on January 31, an increase of £403,193. Noto Circulation Higher. The active note circulation continues at a high level, the total on February 28 being £9,760,709, as compared with £9,660,812 on January 31, an increase of £99.897. 'l’he position of the note circulation as nt February 28, compared with that nt the dates of previous returns, was ns shown in th'e following table:—

Gold Mining Returns By Telegraph—Press Association. Timaru, March 24. The Goldfields Dredging Company re; ports a return of 230 z. 9(1 wt. for 90 hours dredging.

LIABILITIES. (a) Demand liabilities in £ *36,475,529 (b) Time liabilities in New 31,371,406 (c) Demand liabilities elsewhere than in New Zealand incurred in respect (d) of New Zealand business Time liabilities elsewhere than in New Zealand incurred in respect 1,865,134 of New Zealand business 437,298 (J) Notes of own issue in circulation payable in (m) New Zealand business— Excess of assets over lia16,740,951 Total £86,890,318 *Ineluding transfers from Bank of New Zealand’s long-term mortgage £398.613. fund of assets. (e) Reserve balances held in the Reserve Bank of £ 8,108,869 (f) Overseas assets in respect of New Zealand business — 6,690,618 (2) Elsewhere than 3,881,127 (g) (1) Gold and gold bullion held in New 91 (2) Subsidiary coin held 928,395 in New Zealand . . (hl Aggregate advances in 52,773,060 687,335 (hl Aggregate discounts in (i) Reserve Bank of New 4,011,379 (k) Securities held in New Zealand — 7,674,517 (1) Government (2) Other than Gov278,420 (1) Value of land, buildings. furniture, fittings and equipment held in New 1,796,507 Total £86,890,318 (hh ) Aggregate unexercised overdraft authorities .. £24,396,286 Further Rise in Overseas Funds.

1036. £ £ £ Jan. 27 11,149,879 6,183,192 17,333,071 June 29 17,316,659 5,900,334 23,216,993 Dec. 28 7.907,916 5,373,730 13,281,646 1937. Jan. 7,361,885 5,221,770 12,583,655 Mar. 29 11,048,114 5,442,104 16,490,218 June 28 12,174,139 5.027,435 17,201,574 Sep. 27 8,147,276 4,225,095 12.372.371 Dec. 27. 5,199,776 3.637,900 8,837,676 1938. Jan. 31 5,739,073 3.439,731 9,178,804 Feb. 28 6,690,618 3,881,127 10,571,745 Movements in Deposits.

1036. £ £ £ Jan. 27 28,827,915 37,033,007 65,801,522 Jun. 20 30,805,731 36,066,713 06,872,444 Dee. 28 31 .OSO,307 33.123,748 64,204,115 1037. Jan. 25 35,020,901 32,949,080 07,969,981 Mar. 29 36,898,151 31,974.736 G8,872,SS7 Jun. 28 30,052,543 32,947,959 69,000,502 Sep. 27 32,890,247 33,051,072 65,941,319 Dee. 27 33,575.027 32,091,871 65,660,898 1938. Jan. 31 36.186,259 31,631,658 67,817,917 Deb. 28 36,475,520 31,371,406 67,840,935

Deposits. Advances & disets. Excess of deposits. 1936. £ £ £ Jan. 27 65,861,522 45.649,334 20.212.188 Mar. 30 08,476,414 44,918,852 23,557,562 June 29 66,872,444 45,077,019 21,795,425 Sep 28 63,420,499 45,999,813 17,420,686 Dec. 28 64.204.115 48.281.982 15.922,133 1937. Jan. 25 67,969,981 47,416,649 20,553,332 Mar. 29 68,872,887 40,954,095 21,918,792 May 31 69,172,919 48,033,164 21,139,755 June 28 69,000,502 47,710,899 21,289,(103 Sep. 27 65,941,319 50,695,729 15,245,590 Doc. 27 65,666,898 54.002,006 11,664.892 1938. Jan. 31 67,817,917 53,313,050 14,504,807 Deb. 28 07,846.935 53,400,395 14,380.540

T. Banks. fl. Bank. Total. 193(5. £ £ £ Jnn. 27 571,708 6,275,992 6.847,760 Mar. 30 545,254 0,559,787 7,105,041 June 29 517,745 0,704,193 7,221,938 Sept. 28 — 7,771,941 7,771,941 Dec. 28 — 10,443,223 10,443,223 1937. Jan. 25 8,355,153 8,355,153 Mar. 29 — 9,843,930 9,843.930 May 31 9,040,074 9,040,074 June 28 —► 8,658,850 8,058,850 Sep. 27 — 9,262,320 9,262,320 Dec. 27 — 11.679.463 11,679.403 1938. Jan. 31 9,660,812 9,000,812 Feb. 28 — 9,760,709 9,700,709