CHEAPER MONEY
Move to Reduce Overdraft Rate
- It is understood that the current minimum rate for bank overdrafts —now 41 per cent, with "best accounts" ruling at 4 per cent.—is being discussed as between the banks and the Government. The Government, it is reported, has approached the banks for a reduction of the rate, and the matter 's now under consideration.
An important question, in so far as the banks are concerned, is the system of taxation as applied to banks—a system adopted many ycai's ago, when circumstances were materially different from what they are today. That system was based on the assumption that the banks make U per cent, profit on their total assets and liabilities. The banks are, and have been for a long time past, assessed for income tax on this aggregate amount, and the income tax imposed is at the highest rate. .Further information on the subject of overdraft rates was sought from the chairman of the Associated Banks, Mr. H. R. H. Chalmers, but he was not accessible. .
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https://paperspast.natlib.govt.nz/newspapers/EP19410709.2.72.2
Bibliographic details
Evening Post, Volume CXXXII, Issue 8, 9 July 1941, Page 8
Word Count
173CHEAPER MONEY Evening Post, Volume CXXXII, Issue 8, 9 July 1941, Page 8
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