TRADING BANKS

New Zealand Herald, Volume LXXII, Issue 22147, 28 June 1935, Page 14

TRADING BANKS

MAY STATEMENT note issue movements FALL IN FREE DEPOSITS ADVANCES SLIGHTLY LESS [n\* TELEGRAPH —OWN CORRESPONDENT] WELLINGTON, Thuratiny The monthly statement of assets and liabilities of tho six trading banks at the close of business on Monday, May 27, was gazetted to-night. This is the tenth return to appear sinco the Reserve Bank opened, Since tho last previous return for the four weeks ended April 29, the outstanding notes of the trading hanks have decreased by a further £47,215, the total having moved from £800,302 to £753,087. The latter figure is not much more than half the amount shown at December 31. Tli" ictivc note circulation, made up of the trading banks' issue still outstanding and that portion of the Reserve Bank issue in the hands of the public, was £6,178,510 at May 27. This is some £200,000 less than the figure at April 21), and reflects the shrinkage in the public demand for cash currency after the activities of tho Easter holiday season. The position at May 27 compared with those at the dates of the earlier returns was: —

Changes in Deposit Levels The demand liabilities or current account balances of the banks in New Zealand totalled £26,374,859, a reduction of £720,475. This is a second reduction from the peak figure in the returns, £27,673,865, shown at March 25. For the second time since that date, also, there is a rise in tho level of fixed deposits which, at £35,885,504, are £1,50,500 higher than in the last previous return. A comparison of the free and fixed deposits and tho totals of tho two, since last July is given in the following table: —

The advances and discounts at May 27 amounted to £45,381,213, a figure lower by £19,495 than the total on April 29. In spite of the slight decrease the level is still higher than any other in the series of returns except that immediately preceding it. The relative positions of advances and deposits at the dates of the returns are as follows: —■

The Overseas Assets The London assets held by the banks in respect of New Zealand business has again increased, having now reached the striking total of £18,746,113, coinpared with £8,821,538 just before the Reserve Bank began business. The increase since the beginning of_ the calendar year has been £8,127,78- r ). 'lhe overseas assets held elsewhere than in London continue to show the decrease which lias proceeded steadily under Reserve Bank auspices. The total is £838,910 less than at April 29. Because pf this decrease, the level of all overseas assets is approximately £360,000 lower than in the previous return. The totals of these overseas assets of the six banks as shown in the statements since last July, are: —■ London Elsewhere Total Julv HO .. £8.82!.53S £8.350.977 £17,181,515 Aug 27 .. 11.171,087 9,255,542 20,427,529 Sent °4 7,751,171 9.129, (VII 10,880,812 Oct 29 .. in, -191,570 8,918,811 19,443,381 Nov. 20 .. 10,120.808 9,009,119 19,189,987 Drcr. 31 . . 10.(118.328 8,924.25-1 19,542,582 ,Tan °8 .. 12,234,355 7,897,234 20,131,589 Feb' 25 15,299,780 7,351,003 22,051,389 March 25 . 10.005.200 7,312,980 23,918.150 April 29 .. 18,200.133 7,081.884 25.348,017 May 27 .. 18.740,113 6.242.944 21.989,057 The subsidiary coin held at May 27 amounted to £791.101, compared with £777,65G at April 29.

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