TRADING BANKS
RETURN TO NOVEMBER 26 DEPOSITS FALL FURTHER HIGHER LEVEL OF ADVANCES [by telegraph—OWN correspondent] WELLINGTON, Thursday" The fourth monthly statement of the six trading banks to appear since the Reserve Bank began business was gazetted to-night. Issued under section 46 of the Reserve Bank Act, it contains a statement of their assets and liabilities at the close of business on November 26. The statement jnjrmits of a comparison with the position on July •iO, just before the Reserve Bank began operations and at monthly intervals to the last Monday in November.
The notes of the trading banks are returning steadily to disappear from circulation. On November 26 the amount in circulation was £1,84.6,297, compared with £2,206,305 on October 29 and £6,220,241 on July 30. At the time of the latest return the note issue of the Keserve Bank was £9,611,478, of which sum the trading banks held £5,369,005. Consequently, Reserve Bank notes to the value of £4,242,473 were in the hands of the public. This figure added to the trading bank notes still on issue gives the actual note circulation at.November 26. The position then, compared with those at the dates of the earlier returns is shown in the following table:— T. Banks R. Bank Total July 30 .. £(>,220,24! 'Aug. 27 .. 3,009,1(54 2,487,213 6,096,377 Sept. 24 .. 2,71G,0&1 3,407,007 0.183.071 Oat. 29 . . 2,206,305 3,834,663 6.040,908 IN'ov. 26 .. 1,846,297 4,242,473 6,088,770 Lower Fixed Deposits The demand liabilities, or free deposits in New Zealand of the banks amounted to £23,835,044 on November 26. This was £189,986 less than at October 29 and more than £2,000,000 lower than on August 27. The fixed deposits, at £38,065,565 were £980,172 lower than on October 29, this item showing another instalment of the steady, 5 small, reduction since July 30. A comparison of the free and fixed deposits, and the totals of the two at monthly intervals since July 30 is as follows: Free Fixed Total July 30 £24.621,606 £40.592,374 £65,213,980 Aug. 27 26,184,575 40,263.006 66,447,581 Sept. 24 25,771,320 39,586,720 65.358.040 Oct. 29 24,025,030 39,045,737 63,070,707 Nov. 26 23,835.044 38.065,565 61,900,609 Advances and Discounts The advances and discounts on November 26 amounted to £44,417,637, or nearly £900,000 more than at October 29. This is the highest total shown in any of the monthly returns, being some £330,000 greater than 'the figure at July 30. The relative position of deposits and advances at the time of the available returns was: — Excess. of Deposits Advances deposits July 30 £65,213,980 £44,085,003 £21.128,375 Aug. 27 66,447,581 41,201,010 25,186,571 Sept. 24 65,358.040 41.603.073 23.754,967 Oct. 29 63,070,767 43,539,54-4 19.531.223 Nov. 26 61,900,609 44,417,637 17.482,972 The London balances held by the sis banks in respect of New Zealand business were £373,700 lowdr on November 26 than on October 29, Similar assets held elsewhere than in. London have varied only slightly in the period covered by the returns. The totals of overseas assets held on account of New Zealand business, in London and elsewhere, are compared in the following table:— London Elsewhere Total July 30 .. 8,821,'538 £8.359,977 £16.571.515 Aug. 27 11,171,987 9.255,542 20.427.529 Sept. 24 . . 7.751,171 9,129,641 v1G.850.812 Oct. 29 .. 10.494,570 8.945.511 19.443.3i81 Nov. 26 . . 10.120.568 9,069,119 19,189,987 The subsidiary coin held by the banks at November 26 amounted to £609,823, compared with £588,369 on October 29.
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Bibliographic details
New Zealand Herald, Volume LXXII, Issue 22005, 11 January 1935, Page 10
Word Count
545TRADING BANKS New Zealand Herald, Volume LXXII, Issue 22005, 11 January 1935, Page 10
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