FOUR MILLIONS EXCESS OF ADVANCES

Sun (Auckland), Volume 1, Issue 92, 9 July 1927, Page 9

FOUR MILLIONS EXCESS OF ADVANCES

JUNE BANK RETURNS DECREASE IN DEPOSITS (From, Our Resident Reporter.) WELLINGTON, Friday. An excess of advances over deposits of £4,262,739, is shown by the aggregates of the average statements for the June quarter issued by the six banks trading in New Zealand. A year ago there was an excess of advances of £445,392. The adverse movement comprises a reduction in free deposits, exceeding the increase in fixed deposits, and an increase in advances. The comparison with the corresponding returns of last year is unsatisfactory, but the returns show a slight improvement over those for the March quiarter. Compared with the latter the free deposits, or current account balances, are larger by £301,484, while the fixed deposits show an increase of £661,070. The latter improvement is certainly due to the raising of interest rates. Taking the three classes of deposits the position, as compared with the corresponding quarter of last year, is as follows: June, 1926. June, 1927. Decrease. Govt. .. 4,326,278 3,283,043 1,043,235 Free .. 27,594,496 24,741,262 2,853,234 Fixed .. 20,674,853 21,749,104 *1.074,251 Totals £52,595,627 £49,773,409 £2,822,218 ♦lncrease. The aggregates of deposits and advances are compared in the following statement: June Excess of Quarter. Deposits. Advances. Deposits. 1923 .. 45,682,886 41,711,274 3,971,678 1924 .. 47,629,312 43,855,586 3,743,726 1925 .. 51,463,635 43,935,769 7,527,866 Advances. 1926 .. 48,269,349 48,714,741 445,392 1927 .. 46,490,366 50,753,106 4A62.740