BANKING BUSINESS.

Manawatu Standard, Volume LVIII, Issue 121, 21 April 1938, Page 6

BANKING BUSINESS.

DOMINION STATISTICS. The average weekly value of bank debts to individual customers’ accounts with the trading banks in February was £20,942,197, an increase of £4,234,229 above the average in January. February is normally one of the peak months of the year in respect of bank debits; tlio' figures being swelled by the transfer of funds consequent on the payment of incometax. which falls due in this month, states the latest issue of the Abstract of Statistics. The value of bank debits in February, though the second highest on record for a February month, was appreciably below the exceptionally high figure recorded in February, 1937, lyhen the average value for the month was s £22,015,860—£1,073.C63 above the latest figure. The flow of banking funds in February, 1937, was swelled by the exceptionally high wool prices ruling in that month of last year resulting not only in higher returns per bale, but also in a greater clearance of sale catalogues than has been the case this year. For the third month in succession the value of bank deposits on current account with the trading banks shows an increase the average amount on deposit on current account being £33,576.855 in February, an increase of £1,452,885 above the average in January and of £571,895 above the figure for February of last year. The downward trend in fixed deposits continues, the average amount of interestbearing deposits with the trading banks'in February being £32,962,899, as compared with £33,193,531 in the previous month and £34,039,292 in February of last year. The ratio of free deposits to fixed deposits has increased from 96.78 per cent. in January to" 101.86 per cent in February, the latest figure being appreciably above that in February, 1937 (96. 96 per cent), and very much higher than the February, 1936, figure (69.98 per cent.) The value of outstanding advances by the trading banks increased materially, during the off-season, but during the past two months advances have fallen in keeping with the normal seasonal tendency at this time of the year. The averag*e amount of oustandirtg advances in February was £52,746,134, as compared" with £53,473,303 in January and £46,452,400 in February of last year. The ratio of advances to deposits in February -was 78.35 per cent., as comfared with 68.38 per cent., in ebruary, 1937. I The note-circulation, which lias been running at record levels for some months past, fell somewhat in February, the weekly average active note-circulation in that month being £9,333,173, as compared with £9,557,582 in January. The latest figure—-

the third highest on record's—is, despite the fall, substantially higher than.the average in February, 1937 (£8,400,190). Overseas funds (on account of New Zealand business) of banking institutions, in New Zealand rose sharply in February, the amount of such funds on* February 28. being £(N.Z.)25,517,818 as compared with £(N.Z.)22,985,423 a month previously. A seasonal increase in overseas funds is to' be be expected at; this time of the year when such funds s are

augmented from the sales overseas of exports of farm-produce. Ihe upward movement continued last year until the end of May, when th<* amount of overseas „ .l'. a 9 £(N.Z.)37,440,88G, a fall of £(A.Z.)14.455,461 occurring between May, 193/, -and January. 1938, since when an increase of £(N.Z.)2,532,393 lias taken place.