TRADING BANKS

New Zealand Herald, Volume LXXV, Issue 23019, 22 April 1938, Page 10

TRADING BANKS

MAKCH RETURNS LOWER DEPOSIT LEVEL GREATER VOLUME OF ADVANCES f £9,000,000 INCREASE IN YEAR [by- telegraph—own cobrkspondknt] ' WELLINGTON" Thursday The monthly statement of assets and liabilities of the six trading banks at tho • close of business on Monday, )\fairh 28, was gazetted to-night. A comparison of tho principal items with tho corresponding figures' in the return at February 28 is as follows: — March ' February Circulation ... • jCO,S;SO, 18L £8),7(50,700 Free deposits .. 37,000,210 30,475,521) Fixed deposits. .Tt,22-1 1 (K57 ,51,:J7i,10<5 Advances • • -55,837,453 London assets. 7,402,020 Liy Free deposits have increased somewhat more in the month the return covers than in that preceding it. The rise has been £530,000, compared with an increase of £289,000 between January 31 and February 28. Fixed deposits have fallen by £146,700 in fhe February-March period. Advances and discounts continue to rise, tho increase in the four weeks since the February return having been £2,377,000. Assets held •in London on New Zealand account are £771,000 higher in tho March return, compared with an increase of £950,000 in the February statement. Notes in Circulation Notes of the Reserve Bank held as till money on March 28 were valued at £1,018,287. The issue at that date totalled £13,554,408. making an active circulation of £9,53(3,181. There has been a fall of £307,700 for the month. The issue and circulation at the end of March in tho past two years havo been as follows: March Issue Circulation 3 8)37 £13,178),'->55 £8),843,030 1038 13,001,<108 . 9,530,181 Free deposits or current account balances were £IOB,OOO higher at tho end of March this year than at tho corresponding date in 1937. Tho total is approximately £9,500,000 greater than in the March return of 1935 and over £5,000,000 above the level at the end of March 1936. Fixed deposits have fallen some £750,000 compared with tho March total last year. The sum of free and fixed deposits is £642,000 .below that in the preceding March statement. It is also slightly less than the 3936 figure but some £5,000,000 greater than the aggregate deposits in 1935. The levels of the two classes and their totals in the March returns from 1935 onward arc as follows: March Free Fixed Total l £ £ 1035 27,073.803 35,. I">4 ,703 (33,1 28.508 11(3(5 31,046,454 3(5,M0,000 68,476,414 18(37 30,81)8,151 31,071,73(5 68,872,887 1038 37,00(5,216 31,221,007 08,230,883 Advances and Deposits The greater volume of bank loans which has been a marked feature of recent returns is again illustrated by the March figures. The aggregate of advances and discounts at £55.837,453 is nearly £9.000,000 greater than at the corresponding date, in 1937 and this figure in turn was some £2,000,000 higher than in the -March return of 1936. Tho excess of deposits over advances has decreased from £23.500,000 in March 1936 to £12,390,000 in the latest statement, a fall not far short of 50 per cent in the two years. The position at the end of March in the past four years is shown in the following table: — , Excess of Deposits Advances Deposits 'March, £ £ £ 18135 .. 03,128.508 -11,573.305 1 8,555,203 103(i .. (58,170,114 11,8(18,852 23,557,5(52 18(37 .. (58,872,557 4 0,8)54,08(5 21,8(18,78(2 18(38 .. 08,230,883 55.837,453 12,38)3,430 Fluctuations in the value of assets held abroad, in London and elsewhere, on account of New Zealand business as shown in the March returns sfnee 1935. have been as follows: — London Elsewhere Total March, € C £ 18(35 .. 10.005.200 7,312,080 23.8(18.180 T .. 11,11:1.300 0,22(5,321 20.308),(5! (0 18)37 .. 11,04 8.114 5,4 1 2,101 16,48)0.2 1 8 18)38 .. 7,402,020 4,200,28:0 11,0(52,310 Subsidiary coin hold at March 28 was valued at £931,342, compared with £928,395 in the February return. The hanks also held gold valued at £76 at j the end of March.