TRADING BANKS

Manawatu Standard, Volume LV, Issue 233, 30 August 1935, Page 16

TRADING BANKS

DECREASE IN LONDON FUNDS. DEPOSITS AXIT ADVANCES. WELLINGTON, Aug. 30. A sharp rise in advances, a substantial decrease in free deposits, an increase in iixed deposits, and a decrease in London funds, are the principal features of tlie monthly statement of assets and liabilities of the six trading banks in New Zealand, showing the position as at tire close of business on Monday, July 29. 1935. Furnished in accordance with the provisions of the Reserve Rank Act, 1933, the statement, which was gazetted last night, shows the following aggregate figures in respect of the six banks: CREDIT. £ (a) Demand liabilities in X.Z. 25,196,141 (b) Time liabilities in N.Z 35,990,554 (c) Demand liabilities else- ' wboro than in New Zealand incurred in respect of New Zealand business 512,229 (d) Timo liabilities elsewhere than in New Zealand incurred in respect of New Zealand" business 1,137,664 (e) Notes of own issue in ciieulation payable in N.Z 681,639 Total £63,518,227 DEBIT. £ (c) Reserve balances bold in Ibo Reserve Rank of New Zealand 4,253,432 (f) Overseas assets in respect of Now Zealand business—(l) In London 18,034,034 (2) Elsewhere than in London 5,807,953 (g) (1) Gold and gold bullion held in New Zealand ... (2) Subsidiary coin held in New Zealand 675,449 (h) Advances and discounts in New Zealand 45,399,615 (i) Reserve Rank of New Zealand notes 3,436,914 Total £78.112,397 Tho total active note circulation in the Dominion on July 29, made up ot the outstanding notes of tho trading banks and that part of the Reserve Rank issue in the hands of tho public, was £0,093,466, a decrease of £13,494, compared with the total of £6,106,960 on Juno 24. Since June 24. when the last statement was compiled, there lias been a further decrease of £28,429 in the value of the trading luniks’ own notes outstanding. The total stood at £681,639 on Jlily 29, compared with £710.003 on June 24, and £6,220,241 when the Reserve Rank notes began to replace the trading banks issue in August, 1934. The position of the note circulation at July 29, compared with that at the dates of tho other returns issued during the twelve months, was as is shown in the following tabic:—

MOVEMENTS IN DEPOSITS. The demand liabilities, or current account balances in New Zealand of tho trading banks on July 29, amounted to £25,196,141, a decrease of £725,757 since June 24, and a total decline of £2.477,724 since March 25, the total of £27,673,865 on the last-mentioned date being the highest figure of hee deposits held by the trading banks during the last twelve months. An increase of £164,021 is shown in tho trailing banks’ time liabilities, or fixed deposits in New Zealand, the total on July 29 being £35,990,554. During the eight months to March 25 fixed deposits showed a progressive decline. There was an increase during April and May. a small deelinb in June, .and an increase in July, tho net increase from March 25 to July 29 being £535,851. Fixed deposits on July 29 were, however, £4,601.820 less than the total on July 30, 1934. A comparison of the free and fixed deposits and the totals of the two at intervals since J uly 30, 1934, is as follows : Free Fixed •

The demand liabilities of the trading banks, elsewhere than in New Zealand in respect of New Zealand business totalled £512,229 on July 29, compared with £379,930 on June 24, an increase of £132,899. Time liabilities elsewhere than in New Zealand in respect of New Zealand business totalled £1,137,604 on July 29, compared with £906; 478 on June 24, an increase of £231,180. INCREASE IN ADVANCES. The advances and discounts of the six trading banks in New Zealand as at July 29 stood at £45,899,615, the highest figure shown since July 30, 1934, the previous high level being £45,400,708 on April 29 last. Advances and discounts decreased by £228,524 between April 29 and Juno 24, the total oil the latter date being £45,172,184. Between June 24 and July 29, however, advances and discounts increased by the large amount of £727,431. The relative positions of advances and deposits at different periods since July 30, 1934, are shown ill the following table: Excess of Deposits. Advances, deposits.

The ratio of advances to deposits on July 29 was 75.015 per cent, compared with 73.15 per cent, on June 24. and 72.88 per cent, on May 27. OVERSEAS FUNDS LOWER. A sharp decrease of £618.760 since Juno 24 is shown in the trading banks’ London funds, which stood at £lB,034,034 on July 29. Other overseas assets in respect of New Zealand business held elsewhere than in London on July 29 totalled £5,807,953, a decrease of £5891 since June 24, and a decline of £434,991 since May 27. The totals of the banks’ overseas assets in respect of New Zealand business as shows by the monthly returns

sinco July 30, 1934, compare as follow :

Trading Reserve Banks. Bunk. Total. £ £ £ July 30 ... 6 220.241 — 6.220.241 Aug. 27 ... 3.609.164 2,287,213 6.096,377 Sept. 24 .. 2.716,064 3,467.607 6.183,671 Get. 29 ... 2,206.305 3,334.663 6.040.968 Nov. 26 ... 1,846.297 4.242,473 6,038,770 Dec. 31 ... 1.486.235 5,355.568 6.841.823 .Tun. 23 ... 1.043.443 5.043.487 6.036.930 Fob. 25 ... 921.417 5,267.842 6,169.259 Mar. 25 .. 854,640 5.382,889 6.237,529 Apr. 29 ... 800,302 5.579,093 6.379.395 May 27 ... 753,087 5.423.723 6.176.810 .Tune 24 ... 710.063 5,396.892 6.106,960 July 23 ... 681,639 5,411,827 6.093,466

deposits. deposits. Total. 1934. £ £ £ July 30 .. . 24.621.606 40.592,374 65,213,930 Oct. 29 .. . 24,025,030 39,045,737 63,070,767 1935. Jun. 23 .. . 25.856,510 36,444,416 62,300.926 Feb. 25 .. . 27,129,357 36,041.668 63,171,025 Alar. 25 .. . 27.673,865 35,454.703 63.128.568 Apr. 29 .. . 27.095,334 35,755,004 62.850,336 May 27 .. . 26,374,859 35.885.504 62,260.363 June 24 .. . 25,921,898 36,826,533 61,748.431 July 29 .. . 25,196,141 35,990,554 61,186,695

1934. £ £ £ July 30 .. . 65,213,980 44,085,005 21,128,375 Oct 29 .. . 63,070,767 43,539,544 19,531,223 1935. Jan. 28 .. . 62,300.926 44,798.852 17,502,074 Feb. 25 .. . 63,171.025 44.300,732 18,870,293 ]YJar. 25 . . 63,128.568 44,573.365 16,555,203 Apr. 29 .. . 62,850,338 45,400,703 17,449,630 May 27 .. . 62,260,363 45,381,213 16.879.150 Juno 24 .. . 61.748,431 45,172.184 16,576,247 July 29 .. . 61,186,695 45,899,615 15,287,080

London. Elsewhere. Total. 1934. £ £ £ .1 iilv 30 .. 8,821.538 8.359,977 17.181,515 A UR. 27 .. 11,171.987 9.255,542 20,427,529 Sept 24 .. 7,751,171 9,129 641 16.880.812 Oct. 29 .. 10.494.570 8.948.811 19.443,381 Nov. 26 .. 10)120.868 9.069,119 19,189.987 Dec. 31 .. 10.618,328 8,924,254 19,542,582 1935. Jan. 23 .. 12.234.355 7,897,234 20 131.589 Fob. 25 .. 15,299,786 ■ 7,351,603 22,651.389 Alar. 25 . 16,605.200 7.312,980 23,918,180 Apr. 29 .. 18,266.133 7.081.884 25,348.017 May 27 .. 18.746,113 6,242.944 24,989,057 Juno 24 .. 18.682,794 5,813,844 24,496,638 July 29 . 13,034,034 5,807,953 23,841,987