REPORTED LOSSES BY BANK

Taranaki Daily News, 1 August 1930, Page 9

REPORTED LOSSES BY BANK

OPERATIONS IN AUSTRALIA.

MR. POLSON ASKS QUESTIONS.

(By Wife —Parliamentary Reporter.) ' . ’ Wellington, Last Night. An intimation was given by Mr. W. J. Polson in the House to-day that he intends to ask the Minister of Finance whether:—

(1) In view of the disastrous past Australian experience of tire Bank of New Zealand, which contributed largely to the necessity for the banking legislation of 1894 and subsequently induced the bank to adopt a policy of abstention from cultivating general business relations in Australia, a policy approved by the Government of the day and wisely adhered to for over 30 years, is the Minister aware that, judging by figures published under statutory obligations, the policy referred to has within a comparatively recent period been apparently departed from? (2) Has the Minister received any report bearing upon this departure from an official appointed by the Governor-in-Council to safeguard the, country’s interest in the bank? (3) Will the Minister see that steps are taken to impress on the bank authorities the wisdom of abstaining from extending the bank’s operations in the direction” indicated, except in so far as it may be necessary to protect its interests in the matter of exchange and such like business as is not subject to the risks attendant on the carrying on of general banking business in a country adequately supplied with banking facilities by local institutions whose controlling authorities possess a thorough knowledge of Australian conditions?

“Banking figures,” said Mr. Polson, "show that the Bank of New Zealand has nearly £9,000,000 lent on Australian securities ’in Australia and has only £900.000 of Australian deposits. It is also reported that serious losses have recently Leon made by the bank in Australia.”