THE TRADING BANKS

Otago Daily Times, Issue 23332, 26 October 1937, Page 7

THE TRADING BANKS

OVERSEAS FUNDS DECREASING ANOTHER RISE IN ADVANCES A further fall in London funds, a decline in deposits, a substantial increase in advances and a rising note circulation are the principal features of the monthly statement of the assets and liabilities of the six trading banks in New Zealand as at Monday, September 27. A sharp decrease if £1,122,274 is shown in the banks’ London funds, which at that date stood at £8,147,276. The total decrease of nearly £5,000,000 since June is due to the seasonal decline in realisations of exports and to the demand for funds for imports. Overseas funds in respect of New Zealand business held elsewhere than in London totalled £4,225,095, a decrease of £68,605 since August 30. Total overseas funds, London and elsewhere, held by the trading banks, amounted to £12,372,371, a decrease of £1,190,879. The total decrease since June 28 is £4,829.203. Demand liabilities, or • current account balances, of the trading banks in New Zealand, as at September 27 totalled £32,890,247, a further seasonal decrease of £808,265 since August 30. Time liabilities, or fixed deposits in New Zealand, amounted to £33,051,072, a decrease of £310,096 since August 30. The total of demand and fixed deposits in New Zealand was £65,941,319, a decrease of £1,118,361 since August 30. Demand liabilities elsewhere than in New Zealand in respect of New Zealand business on September 27 were £1,026,587, a decrease of £142,130 since August 30. Time liabilities elsewhere than in New Zealand totalled £426,476. an increase of £294. New Zealand business excess of assets over liabilities on September 27 was £18,642,212, as against £18,283,045 on August 30, an increase of £359,167. Reserve bank balances of the trading banks amounted to £8,868,042, as compared with £9,905,099 on August 30. a decrease of £1,037,057. Government securities held by the trading banks totalled £7,643,497, a further increase of £72,193. Other securities amounted to £285,215, a decrease of £3960. Aggregate advances of the trading banks in New Zealand on September 27 amounted to £49,947,036, compared with £48,763,194 on August 30, an increase of £1,183.842. Aggregate discounts on September 30 were £748,693, an increase of £36,070. The total of advances and discounts on September 27 was £50,695,729, an increase of £1,219,912. The excess of demand and time liabilities over aggregate advances and discounts in New Zealand on September 30 was £15,245,590, as compared with £17,583,863 on August 30 and £19,958,154 on July 26. The aggregate unexercised overdraft authorities on September 27 amounted to £23,798,538, as compared with £24,691,036, a further decrease of £892,498. The total of a'ctual advances and discounts and unexercised overdraft authorities was P 74,494,267. The note circulation continues at a level well above that of last year. The total amount on September 27 was £9,262,320, an increase of £142,344 since August 30, and £1,490,379 in excess of that of September 28, 1936.