TRADING BANKS

Dominion, Volume 32, Issue 180, 28 April 1939, Page 12

TRADING BANKS

Increase In Overseas Funds 'SHARP RISE IN ADVANCES Government Securities Higher A further improvement of £388,328 in the net overseas funds of the six trading banks in New Zealand is shown in their monthly returns as at March 27. Other features of the returns are a net increase in deposits, a rise of £791,497 in advances and discounts, and a further advance in the note circulation. The Government’s indebtedness to the trading banks has increased to £10,062,559, as compared wiih £7,629,534 at the corresponding date of last year, a rise of £2,433,025. The monthly summary of assets and liabilities as at Monday, March 27, furnished in accordance with the provisions of the Reserve Bank Act 'shows the following aggregate figures in respect of the six banks LIABILITIES. £ (a) Demand liabilities in New Zealand *38,446,609 (b) Time liabilities in New Zealand 29,878,122 (c) Demand liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 1.955,160 (d) Time liabilities. elsewhere than in New Zealand incurred in respect of New Zealand business 280,801 (m) New Zealand business— Excess of assets over liabilities 18,001,441 Total £88,562,133 ’lncluding transfers from Bank of New Zealand’s long-term mortgage fund of £458,032. ASSETS. (e) Reserve balances held in £ the Reserve Bank of New Zealand 9,038,236 (f) Overseas assets in respect of New Zealand business — (1) In London 5,422,189 (2) Elsewhere than in London 1,459,537 (g) (1) Gold and gold bullion held in New Zealand 220 (2) Subsidiary coin held in New Zealand ... 785,79 a (h) Aggregate advances in New Zealand 54,<48,300 (h) Aggregate discounts in New Zealand <68,966 (i) Reserve Bank of New Zealand notes 4,108,3~l (k) Securities held in New (1) Government .... 10,062,559 (2) Other than Goyernment -66,439 (l) Value of land, buildings, furniture, fittings and equipment held in New Zealand 1,801,523 To tal £88.562,133 (hb) Aggregate unexercised overdraft authorities .. r-oyt>oo,<o-£ Overseas Funds Increase. Between February 27 and March 27 the banks’ overseas funds increased by £166,081. while their overseas liabilities decreased by £222,247, thus giving an increase in net overseas funds ot £.jbb,o-o. London funds on March 27 amounted to £5,422,189, as against £a.011,06h on February 27, an increase ot ±41U,8-i. Overseas funds in respect of New Zealand business held elsewhere than m London 'totalled £1,459,537, compared with £1,704,277 on February 27, a decrease ot £244.740. T , , , Total overseas funds. London and elsewhere, on March 27 amounted to £6.881,726. as against £6,715,645 on February 27. a net increase of ±166,981. Against the total overseas funds, however, .there were on March 27 demand and time liabilities amounting to £2,235,961, thus reducing the net overseas _assets of the six trading banks to £4,645,76.1. compared with £4,257,437. an increase of £388,328. On March 28, 1938, the net overseas funds of the trading banks amounted to £9,634,911. The totals of the trading banks’ overseas assets in respect of New Zealand business, -as shown in the monthly returns, compare as follows : —

Movements In Deposits. Demand liabilities, or current account balances of the trailing banks in New Zealand on March 27 totalled £08,446.603, compared witli £37,564,985 on February 27. an increase of £881,624. Time liabilities, or fixed deposits, in New Zealand, on March 27, amounted to £29,878,122, a decrease of £9579. . The total of demand and time liabilities in New Zealand as at March 27 was £68,324.731. compared with £67,452,986 on February 27, a net increase of £871,745. A comparison ot the trading banks’ demand and time liabilities and the totals

Dcmfind liabilities elsewhere than in New Zealand in respect of New Zealand business at March 27 amounted to £1,955,160, as against £1,873,226 on February 27. an increase ot £81,934. Time liabilities elsewhere than in New Zealand in respect of New Zealand business were £280,801, compared with £584.982 on February 27, a decrease of £304,181. The total of demand and time liabilities elsewhere than in New Zealand on March 27 was £2.235.961. compared with £2,458,208 on February 27. a net decrease of £222,247. 'The item: New Zealand business excels of assets over liabilities on March 27 was £18,001,441, as compared with, £18,707.986 on February 27, a decrease of £706.545. Reserve balances of the trading banks on .March 27 totalled £9,038.236, compared with £10,460,649 on February 27, a decrease of £1,422.413. Government securities held by the banks on March 27 totalled £10.062,559, compared with £9.862.679 on February 27. an increase of £199,880. Other securities at £266.439 were lower by £34. Increase in Advances. For the first time for four months advances show.a sharp increase. Aggre-

London. Elsewhere. Total. 193G. £ £ £ •Tan. 27 11,149,879 6.183,192 17,333,071 .Tune 29 17,316,659 5,900,334 23,216,993 Dee. 28 7,907,916 5,373,730 13,281,646 1037. Jan. 25 7,361,885 5,221,770 12,583.655 Mar. 29 11,0-18,114 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 103S. •J an 31 5.739,073 3,439,731 9,178,804 Mar. 28 7,462,020 4,200,290 11,662,310 June 27 8,308.799 3,054,151 11,362.950 Sep. 26' 4,657,743 2,718,117 7,375,860 Oct. 31 1.115,095 2,520,451 6,635,546 Nov. 28 3,686.111 2,367,067 6.053,178 Dec. 26. 2.785,235 2,214,132 4.999,367 1939. Jan. 30 4,170,664 1,794.070 5.964,784 Feb. 5,011.368 1,704.277 6.715.645 Mar. 27 5.422.189 1.459.537 6,881,726

of the two is as follows : — Total. £ 1936. Demand. £ Time. £ Jan. 27 28,827,915 37,033,607 65,861,522 Jun. 29 30,805,731 36,066,713 66,872,444 Dec. 28 31,080.367 33,123,748 64.204,115 1937. Jan. 25 35,020.901 32,949,080 67,969,981 Mar. 29 36,898,151 31,974,736 68,872,887 Jun. 28 36.052,543 32,947,959 69.000,502 Sep. 27 32.890,247 33.051,072 65,941,319 Dec. 27 33.575.027 32.091.871 65.666,898 1938.. Jan. 31 36,186,259 31,631.658 67,817,917 Mar. 28 37,006,216 31,224,667 68,230,883 Jun. 27 35,062,662 31,108,048 66,170,710 Sep. 2G 32,927,965 30,495,768 63,423,733 Oct. 31 32,S92,933 30.30S.998 63.201,931 Nov. 28 32,707,151 30,154,592 62.861,743 Dec. 26 34,171.765 29.798,007 63.969.772 1939 Jan. 30 36,175.876 29.934.326 (>(>,110,202 Feb. 27 37.564.985 29.888.001 67.452,986 Mar. 27 38,446.609 29,878,122 68.324,731