TRADING BANKS

Wanganui Chronicle, Volume 80, Issue 252, 23 October 1937, Page 15

TRADING BANKS

Overseas Funds Decreasing ANOTHER RISE IN ADVANCES Free and Fixed Deposits. Lower 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 Zeala.*’; lS at Monday, September 27. Furnished in accordance with the provisions of the Reserve Bank Act, 1933, the statement, which was gazetted last night, shows the following agregate figures in respect of the six banks:— Liabilities £ (a) Demand liabilities in New Zealand *32,890,247 (b) Time liabilities in New Zealand 33,051,072 (c) Demand liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 1,026,537 <d) Time liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 426,476 (j) Notes of own issue in circulation payable in New Zealand <m) New Zealand business —Excess of assets over liabilities 18,642,212 Total £86,036,594 ’lncluding transfers from Bank of New Zealand’s long-term mortgage fund of £383,833. Assets £ (e) Reserve balances held in the Reserve Bank of New Zealand 8,868,042 (f) Overseas assets in respect of New Zealand business—(l) In London 8,147,276 (2) Elsewhere than in / x E° ndon 4,225,095 (g) (1) Gold and gold bullion held in New Zealand 1,042 (2> Subsidiary coin held in New Zeaz land 698,479 (h) Aggregate advances in New Zeaiand 49,947,036 (h) Aggregate discounts in New Zealand 748,693 (i) Reserve Bank of New Zealand notes 3,732,066 <k> Securities held in New Zealand—(l) Government 7,643,497 (2) Other than Government 285,215 (1) Values of land, buildings, furniture, fittings and equipment held in New Zealand - 1,740,153 Total £86,036,594 <hh) Aggregate unexercised overdraft authorities 23,798,538 Overseas Funds Lower Another sharp decrease of £1,122,274 is shown in the banks’ London funds, which, on September 27, stood at 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 on September 27 totalled £4,225,095, a decrease of £69,605 since August 30. Total overseas funds, London and elsewhere, held by the trading banks on September 27, amounted to £12,372,371, a decrease of £1,190,879. The total decrease since June 28 is £4,829,203.

The totals of the trading banks' overseas assets in respect of New Zealand business as shown in the monthly returns compare as follows:

Decrease in Deposits 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 at September 27 amounted to £33,051,072, a decrease of £310,096 since August 30. The total of demand and fixed deposits in New Zealand on September 27 was £65,941,319, a decrease of £l,118,361 since August 30. The ratio of demand deposits to fixed deposits on September 27 was 99.513 per cent., as compared with 101.011 per cent, on August 30, 104,565 per cent, on July 26, and 109.422 per cent, on June 28. A comparison of the trading banks' demand and time liabilities and the totals of the two is as follows:

Demand liabilities elsewhere than in New Zealand in respect of New Zealand business oij September 27 were £1,026,587, a decrease of £142,130 since August 30. Time liabilities elsewhere than in New Zealand on September 27 totalled £426,476, an increase of £294. The item: 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 on September 27 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 on September 27 totall-

ed £7,643,497, a further increase of £72,193. Other securities amounted to £285,215, a decrease of £3960. Further Increases in Advances 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 dis counts 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 relative positions of advances and deposits at different periods is shown in the following table: —

The ratio of advances and deposits to total demand and time liabilities in New Zealand on September 27 was 76,880 per cent, as compared with 73.778 per cent, on August 30, 70.705 per cent, on July 26, and 69.145 per cent, on June 28. The aggregate unexercised 'overdraft authorities on September 27 amounted to £23,795,538. as compared with £24,691,036, a further decrease of £892,498. The total of actual advances and discounts and unexercised overdraft authorities on September 27 was £74,494,267. Note Circulation Higher 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 f 1,490,379 in excess of that of September 28, 1936. The position of the note circulation as at September 27, compared with that at the dates of previous returns, was as shown in the following table:

London. Elsewhere. Total. 1936. £ £ £ Jan. 27 ... 11,149,879 6,183,192 17,333,071 Mar. 30 .. 14,143,369 6,226,321 20,369,690 June 29 .. 17,316,659 5.900,334 23,216,993 Sept. 28 .. 12,890,571 5,785,499 18,676,070 Dec. 28 .. 7,907,916 5,373,730 13,281,646 1937. Jan. 25 ... 7.361,885 5,221,770 12,583,655 Mar. 29 .. 11,048,114 5.442,104 16,490,218 June 28 .. 12,174,139 5,027,435 17,201,574 July 26 .. 11,225,913 4,729,405 15,955,318 Auk. 30 .. 9,269,550 4.293,700 13,563,250 Sept. 27 .. 8,147,276 4,225,095 12,372,371

1936. Demand. Time. £ Total. £ Jan. 27 .. 28,827,915 37,033,607 65,861,522 Mar. 30 . 31,946,454 36.529.9Go 68,476,414 Jun. 29 . 30,805,731 36,066,713 66,872,444 Sept. 28 . 28,934,657 34,185,842 63,420,499 Dec. 28 . 31,080,367 33,123,748 64,204,115 Jan. 25 35,020,901 32,949,080 67,969,981 Mar. 29 . 36,898.151 31,974,736 68,872,887 Jun. 28 . 36,052,543 32,947,959 69,(10(1,5(12 July 26 . 34,824,604 33,304,091 68,128,695 Aug. 30 . 33,698,512 33,361,168 67,059,680 Sept. 27 . 32,890,247 33,051,072 65,941,319

Deposits. Advances Excess of & disets, deposits. 1936. £ £ £ Jan. 27 65.861,522 45,649,334 20,212,188 Mar. 30 68,476.414 44,918,852 23,557,562 June 29 .. 66,872,444 45,077,019 21,795,425 Sept. 28 .. 63,420,499 45,999,813 17,420,686 Dec. 28 .. 64 204,115 48,281,982 15,922,133 1937. Jan. 25 .. 67,969,981 47,416,649 20,553,332 Mar. 29 .. 68,872,887 46,954,095 21,918,792 May 31 .. 69,172,91'J 48,033,164 21,139,755 June 28 .. 69,000,502 47,710,899 21,289,6113 July 26 .. 68,128,695 48,170,541 19,958,154 Aug. 30 . . 67,059,680 49,475,817 17,5s:;,m;.; Sept. 27 .. 65,941,319 50,695,729 15,215,590

T. Banks. R. Bank. Total. 1936. £ £ £ Jan. 27 .. 571.768 6,275.922 6,847,760 Mar. 30 .. 545.254 G.559,787 7,105,041 June 29 .. 517,745 6,704,193 7,221,938 Sept. 28 .. — 7,771,941 7,771,941 Dec. 28 M — 10,443,223 10,443,223 1937. Jan. 25 ., — 8,355,153 8,355,153 Mar. 29 .. — 9,843,930 9,843,930 May 31 .. — 9,040,074 9,040,074 Jane 28 .. — 8,658,850 8,658,850 July 26 .. — 8,645,774 8,645,774 Aug. 30 .. — 9.119,976 9,119,976 Sept. 27 .. -- f,262,320 9,262,320