FEBRUARY BANK STATISTICS

Southland Times, Issue 24106, 20 April 1940, Page 6

FEBRUARY BANK STATISTICS

Free Deposits Rise Sharply

ADVANCES CONTINUE TO DECLINE Banking statistics in February are affected considerably by the adjustments attending the annual transfers of funds after the payment of income tax and local authority rates. In addition, February, is one of the peak months of the export season. These factors are mainly responsible for the high level of bank debits to individual customers’ accounts normally recorded in February.

The weekly average for February 1940, according to the latest Abstract of Statistics, was £21,131,493, an increase of £4,264,260 on the average for January, but a decrease of £721,741 below the February average last year. This decrease may be ascribed to the fact that in 1939 the final day for the payment of income tax to escape the penalty was February 28, but this year it was March 4. The aggregate of bank debits for the two weeks ended March 11, 1940, amounted to £50,246,683, compared with £45,536,869 for the two weeks ended March 13, 1939. A further sharp rise in deposits on current account has taken place, and, although such a movement is seasonal, the amount of the increase is considerably greater than usual. The average 11, 1940, amounted to £50,246,682, compared with £40,383,409 in January, and

£34,483,315 in February 1939. Deposits on current account normally commence to move upward in December, the increase between November and February of the last three years being as follows: 1937-38, £3,690,495 (12.4 per cent); 1938-39, £4,214,645 (13.9 per cent.); 1939-40, £G,036,669 (16.4 per cent.). FIXED DEPOSITS Fixed deposits, which had recorded a gradual upward movement since July last, declined slightly in February, the average for that month (£33,073,733) being £403,748 less than that for January. Compared with February last year, however, there has been an increase of £1,880,241. The percentage ratio of free to fixed deposits which stood at 110.55 in February 1939, had risen to 129.61 in February 1940. The volume of bank advances has continued to decline, although the movement during the last three months has been more or- less in keeping with the normal seasonal trend. The average amount outstanding in February was £48,082,804, compared with £50,419,642 in January and £55,263,094 in February 1939. Compared with February last year, the latest figure shows a decrease of £7,180,290 (13 per cent.), while the ratio of advances to deposits has fallen from 83.32 per cent, to 62.75 per cent, in the same period. NOTE CIRCULATION

The active bank note circulation which reached a new high level in December last, recorded a comparatively sharp decline during the next two months, the average for February (£13,056,228) being £855,911 less than the December figure. There has been a further substantial accretion to the net overseas funds (on account, of New Zealand business) of the banks operating in New Zealand. The amount held on February 26 was £19,972,656, compared with £16,609,043 on January 29 and £9,059,193 on February 27, 1939, the amounts being stated in New Zealand currency.