BANKING AVERAGES

Otago Daily Times, Issue 21998, 6 July 1933, Page 8

BANKING AVERAGES

RETURNS FOR JUNE QUARTER AMPLE FUNDS FOR INVESTMENT MARKED INCREASE OF DEPOSITS (Special to Daily Times.) WELLINGTON, July 5. The banking returns for the quarter 1 ended June) which were issued to-day, are, as usual, a fairly clear reflection of the prevailing economic conditions in the Dominion, '.they are chiefly remarkable for an increase of over £3,500,000 in the deposita ; a decrease of over £3,750,000 in the advances, and an increase of nearly £5,000,000 in the amount of Government securities held by the banks as compared with the “ averages ” of the corresponding quarter of last year. The principal increases and decreases disclosed by the latest returns, compared with those for the June quarter of 1932, are as follows: — £

The free deposits or current account balances for the quarter just ended, at £18,866,445, show a notable increase of £2,050,563 compared with those of a year ago. This increase in deposits maintains the upward trend in evidence since the beginning of the year. The accounts held by nil the banks shared the increase, as is shown in the following table:— In-

Totals .. 10,815,882 18,806,445 2,050,503 There is still no sign of a check to the growth of fixed deposits, which at nearly £37,000,000 show an increase of £1,466,658 compared with those of a year ago. This indicates the 1 general lack of confidence in the investment market, but it is also due in part to the holding of funds here, which but for the adverse exchange rate would normally be remitted to London. All the banks have shared the increase in fixed deposits as is shown in the following comparative table:—

Totals .. 35,400,900 30,807,558 1,466,658 The movements of free and fixed deposits in the June quarter for the last eight years have been as follows: —

The table clearly shows the abnormal and continuous growth of fixed deposits in recent years. It will be seen that the free deposits are now nearly threequarters of a million higher than for the June quarter of 1931. Compared with a year ago there has been a further marked reduction in advances amounting to £3,767,655, of which the Bank of New Zealand accounts for well over £2,500,000 and the Union Bank of Australia for more than £460,000. The detailed figures for the six banks are as follows: Bank. June, 1932 June, 1933. Decrease.

Totals .. 49,915,034 46,147,379 3,707,653 * Increase.

The movements in advances and discounts —that is, the credit given by the banks to the public—during the June quarter of the last seven years have been as follows:

An interesting comparison is afforded in the relationship of advances to deposits, which shows the amount of funds available with the banks. The movements during the June quarters of the last nine years are as follows:

The table shows that the excess of deposits over advances for the last quarter was greater than for any similar period during the last nine years except 1929. The ratio of advances to deposits for the quarter just ended was 83.89 per cent. The banks are certainly amply supplied with funds.

The note circulation last quarter showed an increase of nearly £300,000 over that for the corresponding period of last year, and was the highest recorded for the June quarter since 1930. (Che figures are as follows:—

There has been a reduction of £1,129,129 in the banks’ holdings of gold coin and bullion due to exports during the last 12 months. The total holding is now approximately £2,500,000, or 50 per cent, less than six years ago.

Government securities .. .. •4,892,294 Government deposits .. .. +56,211 Free .. •2,050.563 Fixed deposits .. •1,466,658 Advances +3,767,655 Discounts :. +56.629 Note circulation •283,704 Coin and bfldlion +1,129,129 * Increase. + Decrease. The chief features of the latest returns and those of the June quarter, 1932, are compared in the following table : — June, 1932. Juno, 1933. £ £ Free deposits .. 10,815,882 18,860,445 Fixed deposits .. .. 35,400.900 30,867,558 Government deposits 1,790,518 1,740,307 Note circulation 0,021,350 6,305,000 Coin and bullion .. 6,207,587 5,078,458 Discounts 606,301 609,732 Advances 49,915,034 40,147,379 Government securities 0,153.181 14,045,475

Bank. June, 1932. June, 1933. crease. £ £ £ New Zealand 8.120,130 8,958,122 837,992 National 2,747,180 3,334,950 587,764 N.S. Wales .. 1,784,318 1,999,316 214,998. Union 1,889,712 2,124,800 235,088 Australasia .. 1,532,929 1,626,787 93,858 Commercial 741,607 822,470 80,863

Bank. June, 1932. June, 1933. Increase. £ £ £ New Zealand 17,648,559 18,442,063 794,104 National 6,270,133 6,368,128 97,993 N.S. Wales .. 3,926,204 4,104,733 178,331 Union .. .. 3,844,082 4,079,112 235,030 Australasia .. 3,025,740 3,127,584 101,844 Commercial .. 636,180 745,336 59,156

Juno Free. Fixed quarter. Deposits. Deposits. Totals. £ £ £ 1926 .. 27,594,406 20,674,353 48,269,349 1927 .. 24,741,262 21,749,104 46,490,366 1923 .. 25,337,145 27,589,983 52,947,133 1929 .. 26,810,331 30,241,013 57,051,894 1930 .. 23,225,864 30,522,174 53,748.038 1931 .. 18,124‘,1C2 33,045,224 51,169,386 1932 ' .. 16.815,832 35,400,900 52,216,782 55,734,003 1933 .. 18,860,445 36,807,558

£ £ £ Now Zealand 23,2X1,250 20,662,327 2,548,923 National 8,894,849 8,663,489 231,360 N.S. Wales 5,858,002 5,594,150 263,852 Union .. 5,900,679 5,439.131 461,548 Australasia 4,717,644 4,439,624 278,020 Commercial 1,332,610 1,348,658 *16,048

Advances. Discount* Total. £ £ £ 1027 .. 49,244,998 1,508,108 50,753,106 1928 .. 44,249,501 1,177,454 45,426,955 1929 .. 40,368,784 1.038,427 47,407,211 1930 .. 52,874,472 1,188,690 54,063,102 1931 .. 52,499,800 895,674 53,395,534 1932 49,915.034 006,301 50,581,395 1933 .. 40,147,379 609,732 40,757,111

Excess of Deposits, Advances. Deposits. £ £ £ 1925 .. 51,463,635 43,935,770 7,527,865 1926 .. 48,269,349 48,714,742 *445,393 1927 .. 46,490,366 50,753,106 *4,262,740 1928 .. 52,947,133 45,420,955 7,520,178 1929 .. 57,051,894 47,407,211 9,644,683 1930 .. 53,748,038 54,063,162 *315,124 1931 .. 51,169,387 53,395,534 *2,226,147 1932 .. 52,216,782 50,581,395 1,635,387 1933 .. 55,734,003 46,757.111 *8,976,892 * Excess of Advances.

Note Coin Circulation. and bullion £ £ 1928 .. .. 6,432,109 7,567,494 1929 .. .. 0,547,872 7,217,367 1930 .. .. 6,433,265 0,843,567 1931 .. .. 5,815,713 6,926,030 1932 .. .. 6,021,360 6,207,587 1933 -. .. 6,305,060 5,078,458