BANK INTEREST RATES

Hawera Star, Volume XLVII, 2 May 1928, Page 12

BANK INTEREST RATES

QUESTION Ob’ REDUCTION. “NO PRECIPITATE ACTION.” [Hi ri.I.HUIIAI'U—I'KJiSS iSSOOInIiON. j U'ELLi AGU'OiN, April 28. Representations navie a-econtiy i»sen inode m various quarters tiiot in view | oi tue imp.uvea eeononno position, tue I associated banks should review 'tilie'jr I nufts lor weidiufts. 'J lie position was tltsouisisvxl ito-day by a banting authority, who agreed that there had beeh a. marked improvement in comparison with conditions a year ago. •j he authority recalled that tile returns' fur the first quarter' ©t . irct pear showed an excess ot advances over deposits of £o,2< 2,000, which indicated an unfavourable movement during the preceding 12 mouthy, of £4,290,(X)U. As tne.e was every indication of a steads increase in the disparity between advancea and deposits, the bank decided to offer niore attractive terms for fixed deposits and to make a car responding increase in the rate for advances. “The figures for the quarter jus* ended reveal that this action lias had the anticipated effect of attracting money to the banks and of reducing overdrafts. ’> he continued. “During the period deposits have risen above advances to the extent u_- £3,888,(MX). Tin’s changed state of affairs is the best answer to those who have criticised the action ctf the banks in their attempting to gain and maintain financial stability. i “The country has passed through a successful season, and there i;s> now no longer any doubt that the position is improved. But it must be realised that it is. so because we have reduced our imports. Therefore, the banks do not wish to take anv precipitate action, and, that being so. the higher iratey? of interest will continue until we otc satisfied that the change is warranted and will 1 have no bad effects. The improvement in the last quarter has been most marked, and is very satisfactory to everyone. ! ’ •