TRADING BANKS

Dominion, Volume 33, Issue 86, 5 January 1940, Page 12

TRADING BANKS

Increase In Overseas Funds

ADVANCES AGAIN LOWER Substantial Rise in Deposits A substantial increase in overseas funds, a further large increase in deposits, another decrease in advances and discounts, a further increase in Government securities and a rise in the note circulation are the outstanding features of the latest monthly returns of the six New Zealand trading banks. The monthly summary ot assets anil liabilities aS at Monday, November 27, furnished in accordance with the provisions of the Reserve Bank Act shows the following aggregate figures in respect of the six banks : —

Increase In Overseas Funds. An increase of £1,660,607 is shown in the banks’ net overseas assets as at November 27, compared with those on OetobelLondon funds on November 27 totalled £5,948.779, compared with £4,714,408 on October 30, an increase of £1,234,321. Overseas assets elsewhere than in London amounted to £1,659,634, compared with £1,666,764 on October 30, a decrease of £7130. T , Total overseas funds, London and elsewhere, on November 27 were £<,608,413, compared with £6,381,222 on October 30, a net increase of £1,227,191. Against the total overseas funds, however, there were on November 27 demand and’ time liabilities amounting to £2,924,551, thus making the banks’ net overseas assets £4,683,862, compared with £3,023,255 on October 30, an increase for the mouth of £1,660,607. The totals of the trading banks’ overseas assets in respect of New Zealand business, as sjiown in the monthly returns, compare as follow : —

Sharp Kise In Deposits. A further substantial increase of nearly £2,600,000 is shown in deposits. Demand liabilities, or current account balances in New Zealand on November 27 totalled £40,175,598, eqmpared with £38,150.747 on October 30, an increase of £2,024,851. Time liabilities, or fixed deposits, in New Zealand on November 27 jvere £31,196,496, compared with £30,627.502 on October 30, an increase of £568,994. The total of demand and time liabilities in New Zealand on November 27 was £71,372,094, compared with £68,778,249 on October 30, an increase of £2,593,845.

A comparison ot the trading banks’ demand and time liabilities and the totals of the two is as follows: —

The total of demand and time liabilities elsewhere than in New Zealand in respect of New Zealand business on November 27 was £2,924.551, compared with £3,357.967 on October 30, a decrease- of £433.110. The item: New Zealand business, excess of assets over liabilities, on November 27 was £20.086,150, compared with £20.714,282 on October 30. a decrease of £28.132. Reserve balances ol the six banks on November 27 totalled £13.-133,380, compared with £13,204.581 on October 30, an increase of £228,805. Government securities held by the six trading banks show a further large increase 'of £1,149,289. the total on November 27 being £14,418.008, ns against £13,269,379 on October 30. At the end of November, 1935, the amount was £8.613,000. Further Decrease In Advances. Aggregate advances of the trading banks in New Zealand on November 27 were £52,193.120, compared; with £52,545,072 on October 30, a decrease of

£351,952. Aggregate discounts were £167’522, compared with £282,962, a decrease of £115,440. The total of advances and discounts on November 27 was £52,360,642, compared with £52.828.034 on October 30, a decrease of £467,392. The excess of demand and time liabilities over aggregate advances and discounts on November 27 was £19,011,452, compared with £15,950,215 on October 30.

The relative positions ot advances and deposils at different periods is shown in the following table: —

The ratio of aggregate advances and discounts total demand and time liabilities on November 27 was 73.362 per cent, compared with 76.809 per cent, on October 30. and 79-280 per cent, on September 25. The aggregate unexercised overdraft authorities on November 27 totalled £24.538.678, compared with £23,846,294 on October 30. an increase of £692,384. The total of advances and discounts and unexercised overdraft, authonl ies was £70.899,320. compared with £76,674,328 on October 30, an increase of £224.992. The active note circulation on November 27 was £13,11.7,068, compared with £13,028,368, an increase of £88,700.

LIABILITIES. £ (a) Demand liabilities in New Zealand *40,175,598 (b) Time liabilities in New 31,196,49(1 Zealand (c) Demand liabilities elsewhere than in New Zealand incurred in respect 2,265,513 of New Zealand business (d) Time liabilities elsewhere than in New Zealand incurred in respect 659,038 of New Zealand business (m) New Zealand business— Excess of assets over lia 20,686,150 bilities Total £9-1,982,795 * Including transfers from Bank oi New Zealand’s long-term mortgage > fund ot £370,415. ASSETS. £ (e) Reserve balances held in the Reserve Bank of 13,433,386 New Zealand (f) Overseas assets in- respect of New Zealand business — (1) In London (2) Elsewhere than in London o,y4b, 779 1,659,634 (g) (Ij Gold and gold butlion held in New 256 Zealand (2) Subsidiary coin held in New Zealand . - ■ 739,016 (h) Aggregate advances in New Zealand .52,193,120 (h) Aggregate discounts in New Zealand 167,522 (i) Reserve Bank of New 4,317,770 Zealand notes (k) Securities held in New Zealand — (1) Government .... 14,418,668 (2) Other than Government 257,236 (1) Value of land, buildings, furniture, fittings and equipment held in New Zealand 1,847,408 Total • £94,982,795 (bh ) Aggregate unexercised overdraft authorities .. £2-1,538,678

London. Elsewhere. , Total. 1936. £ £ £ Jan. 27 11,149,879 6,183,192 17,333,071 June 29 17,316,659 5,900,334 23,210,993 Dec. 28 7,907,916 5,373,730 13,281,646 Jan. 25 7,361,885 5,221,770 12,583,655 Alar. 29 11,048,114 5,442,104 16,490,218 June 28 12,174,139 5,027,435 17,201,574 Sep. 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 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 Dec. 26. 2, i 8u,2ou 2,214,132 4,999,367 1939. Jan. 30 4,170,664 1,794.070 5.964,784 Mar. 27 5,422,189 1,459,537 6,881,726 June 26 4,668,955 1,467,107 6,136.062 Sept. 4,577,000 1,729,757 6,306,757 Oct. 30 4.714,458 1,666,764 6,381,222 Nov. 27 5,948.779 1,659,634 7,608,413

Demand. Time. Total, 1936. £ £ £ 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 31,074,736 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 67,811,911 Mar. 28 37,006,216 31,224,667 68.230.883 Jun. 27 35,062,662 31,108,048 66,170.710 Sep. 26 32,927,965 30,495,768 63.423,733 Dec. 26 34,171.765 29.798.007 03.969.772 1939 Jan. 30 36,175.876 29.934,326 66.110.202 Mar. 27 38,446.609 29,878,122 68.324,731 J line 26 37,276,032 29,426,384 66,702,416 Sept. 25. 37,412.533 30,226.482 67,639.015 Oct. 30 38,150,747 30,627,502 68,778,249 Nov. 27 40,175.598 31,196.496 71,372,094

Deposits. Advances & disets Excess ol deposits 1936. £ £ £ Jan. 27 65,861,522 45,649,334 20,212,188 Mar. 30 68,476.414 ■14,918,852 23,557.562 June 29 66,872.-1-14 45,077,019 2.1,795,425 Sep. 28 63,-120,499 45,999,813 17,420,686 Dec. 28 64.201.115 -18.281.982 15.922.133 1937 Jan. 25 67.969.981 17,-116,649 20.553,332 Mar. 29 68,872,887 46,954,095 21.918,792 June 28 69,000.502 47,710,899 21.289.603 Sep. 27 65,941.319 50,695,729 15,245,590 Dec. 27 65.666.S98 5-1.002.006 11.664.892 1938. Jan 31 67,817.917 53,313.050 14,504,867 Mar. 28 68,230.883 55,837,453 12,393.430 Jun. 27 66,170,710 54.885,803 11,2,84,907 Sep. 26 64,365.086 56,275.749 8,089,337 Nov 28 62.861.743 5S.907.633 3.951.110 Dee. 26 63.969.772 57.797.-107 6,172.365 1939. Jan 30 66,110,202 56,187,036 9,923.166 Mar. 27 67,324.731 55,517,316 12.807,415 .June 26 66,702.416 55.090,252 11.612,164 Sept. 25 67,639,015 53.624.229 14,014,786 (let 30 68.778.2-19 52.828,034 15.950,215 Nov. 27 71,372,0!)-! 52,360,642 19.011.452