TRADING BANKS

Wanganui Chronicle, Volume 79, Issue 204, 29 August 1936, Page 7

TRADING BANKS

ADVANCES RISE, DEPOSITS LOWER OVERSEAS FUNDS DECREASE NOTE CIRCULATION DOWN An improved ratio of advances to deposits and a decrease in overseas funds are the principal features of the monthly statement of the assets and liabilities of the six trading banks in New Zealand as at the close of business on Monday, July 27. Furnished in accordance with the provisions ot the Reserve Bank Act, 1933, the statement shows the following aggregate figures in respect of the six banks:—

Total £85,442,382 Overseas Funds Lower 'Die trading banks' London funds on July 27 totalled £16,729,219, a decrease of £587,440 since June 29, and £1,304,815 below the level of twelve months ago. Overseas funds held elsewhere than in London in respect of New Zealand business amounted to £5,876,674, a decrease of £23,660 since June 29. The total overseas funds on July 27 were £22,605,893, a decrease of £611,100 since June 29, and £1,236,094 less than the total of twelve months ago. The totals of the trading banks overseas assets in respect of New Zealand business as shown in the monthly returns compare as follows: —

July 27 .. 16,729.219 5,876.674 22,605,893 Note Circulation Lower '[’he total of the note circulation in the Dominion on July 27 was £7,170,571. a decrease of £51,367 since June 29. The trading banks’ own notes still outstanding at July 27 amounted to £510,528, a decrease of £7217 since June 29. The position of the note circulation as at July 27, compared with that at the dates of previous returns, was as shown in the following table:

Further Decrease in Deposits The demand liabilities or current account balances of the trading banks in New Zealand on July 27 totalled £30,263,298, a decrease of £537,433 since June 29. Thus there has been a decline of £1,780,954 since April 27, representing a sharp check to the upward movement which had been in progress since Octob • 1935. The greatly increased realisations for wool and the improved prices of dairy produce have contributed materially to the buoyancy of demand liabilities, which are, in part, a reflection of improving business activity. Time liabilities, or fixed deposits, on July 27 totalled £35,613,794, a decrease of £452,919 since June 29. The total of demand and time liabilities on July 27 was £65,882,092, a decrease of £990,322 since June 29. since April 27 there has been a decrease of £3,477.986 from the total of £69.360.078 on that date, that, figure being the highest since July, 1934 A comparison of the trading banks'

demand and time liabilities and the' totals of the two is as follows:—• Demand Time. Total 1935 £ £ £ Mar. 25 21,673.865 35,454,703 63,128,568 June 24 25,921.898 35,826,533 61.748.431 ! Sent. 30 24.635,039 36,750.637 61.385.676 I Dec. 30 27,167,633 37,135,850 64.303,483 1936. Jan. 27 28,827,915 37,033.607 65.861,522 Mar. 30 31.946,464 36,529,960 68,476,414 Apr. 27 32.049.252 37.310,826 69 360,078 May 25 31,583,672 36,675.282 68.258.954 June 29 30.805.731 36,066,713 66.872 444 July 27 30.268.298 35,613.794 65.882.092 Demand liabilities elsewhere than in New Zealand in respect of New ' Zealand business on July 27, amounted to £878.478, an increase of £273,193 since June 29. Time liabilities elsewhere than in New Zealand in respect of New Zealand business amounted to £607,096, a decrease of £170,486. The item: New Zealand business, excess of assets over liabilities, on July 27 was £17,564,188, an increase of £128.577 since June 29, and a total rise since April 27 of £1,440,511. Balances held by the trading banks in the Reserve Bank on July 27 totalled £6,366,322, a decrease of £319,369 since June 29, and a total decline of £2,204,347 since April 27. The aggregate unexercised overdraft authorities on July 27 were £23,027,608, compared with £22.895.826 on June 29, an increase of £131,782. Advances and Discounts Advances of the trading banks on July 27 totalled £44,732,156, an in- i crease of £92,718 since June 29, and I discounts amounted to £452,808, an increase of £15,227. Aggregate advances and discounts totalled £45,184,964, compared with £45,077,019 on June 29, an increase of £107,945, but a net decrease since last September of £2,526,529. The excess of deposits over advances and discounts on July 27 was £20,697,128, a decrease of £l,098,297 since June 29, The relative position of advances and deposits at different periods is shown in the following table:— Deposits, & disets. deposits. Advances Excess of 1935. £ £ £ Mar. 25 63,128.568 44,573,365 18.555,203 June 24 61,748,431 45,172,184 16,576.247 Sept. 30 61.385,676 47,711,493 13.674.183 Dec. 30 64,303.483 46,566,378 17,7377105 1936. Jan. 27 65,861,522 45.649,334 20,212,188 Mar. 30 68.476,414 44.918.852 23.557.562 Apr. 2 7 69,360,078 45,090.868 24,269,210 May 25 68,258.954 44,970,796 23,288.158 June 29 66,872,444 45,077.019 21,795,425 July 27 65.882,092 45,184,964 20,697,128 The ratio of advances and discounts to total deposits on July 27 was 68,585 per cent., compared with 67,407 per cent, on June 29 and 65,882 per cent, on May 25. The low point was 55.95 per cent, in August, 1934.

LIABILITIES (a) Demand liabilities in New Zealand *30,268,298 (b) Time liabilities in New Zealand 35,613,794 (c) Demand liabilities elsewhere than New Zealand incurred in respect of New Zealand business I (d) Time liabilities else873,478 where than in New Zealand incurred in respect of New Zealand business 607,096 (j) Notes of own issue-in in circulation payable in New Zealand 510,528 (m) New Zealand business -—Excess of assets over liabilities 17,564,188 Total £85,442,332 "Including transfers fron Bank of New Zealand's long-term mortgage fund of £324,112. ASSETS (e) Reserve balances held £ in the Reserve Bank of New Zealand 6,365,322 (f) Overseas assets in rerespect of New Zealand business— (1) In London . . 16,729,219 (2) Elsewhere than in London 5,876,674 (g) (1) Gold and gold bullion held in New Zealand 1,335 (2) Subsidiary coin held in New Zealand . . 716,829 (h) Aggregate advances in New Zealand 44,732,156 (h) Aggregate discounts in New Zealand 452,808 (i) Reserve Bank of New Zealand notes 3,517,660 (k) Securities held in New Zealand— (1) Government 5,228,697 (2) Other than Government 295,866 | (1) Value of land, buildings, furniture, fittings and equipment held in New Zealand 1,524,816

London. Elsewhere. Total. 1935 £ £ £ Mar ”5 ..16,605,200 7.312,980 23.1'18.180 June ‘24 .. 18.682.794 5.813.844 24,496,638 Sent. 30 16.206.526 5.672.475 21,819 001. Dec. 3'1 9.754.717 6,028,133 15,782,850 Tan' ,f ' '7 11,149.879 6,183,192 17,333 071 Mar. 30 ..14.143,369 6.226.321 20,369.690 Apr. 27 .. 15,980.160 6.305,068 22,285 228 May 25 16,700,923 6.158,044 22.858,967 June 29 .. 17.316.659 5.900,334 23,216 993

T. Banks. R. Banks. Total. 1935. £ £ £ March "5 854,640 5,382.889 6,237,529 j, jnc 04" 710.068 5.396.892 6.106.960 Sent 30 . .. 632.584 5.860,257 6.492,841 Per. 30 • • 584,668 7,029,286 7,613,954 1936. j an -7 .. 571.768 6.275,092 6.847,760 March 30 .. . 545.254 6.559.787 7.105.041 April 27 .. 537.624 6.613.057 7.150.681 May °5 • . • 528,062 6,636,765 7.164,827 June 29 ■■ 517.745 6,704,193 7,221,938 July 27 .. .. 510,528 6,660,043 7,170,571