TRADING BANKS

Wanganui Chronicle, Volume 80, Issue 276, 20 November 1937, Page 5

TRADING BANKS

FALL IN OVERSEAS FUNDS ADVANCES STILL KISING A further fall in overseas funds, a rise in free deposits, a sharp decline in lixed deposits, another 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 Zealand as at Monday, October 25. Furnished in accoidance with Ihe provisions of the Reserve Bank Act, 1933, the statement, which was gazetted on Thursday night shows tlie iollowing aggregate figures in respect of the six banks:— LIABILITIES.

Overseas Funds Decreasing

A further decrease of £379,765 is seen in the banks’ London funds, which at October 25 stood at £7,767,511. The total decrease of £4,406,628 since June is due to the seasonal decline in realisations of exports and the demand for funds to finance imports. Overseas funds in respect ot INew Zealand business held elsewhere than in London on October 25 totalled £4,090,645, a decrease of £134,450 since September 27. Total overseas funds, London and elsewhere, held by the trading banks on October 25, amounted to 111,858,156, a decrease of £514,215. The total decrease since June 28 amounts to £5,343,418. The totals of the trading banks’ overseas assets in respect of New Zealand business as shown in the monthly returns compare as follows:--

Movements in Deposits. Demand liabilities, or current account balances, of the trading banks in New Zealand, as at Uctooer 25, totalled 133,311,659, an increase ol £421,412 since September 27. Time liabilities, or fixed deposits in New Zealand at October 25 totalled £32,311,856, a decrease of £739,216 since September 27. The total of demand and fixed deposits in New Zealand on October 25 was £65,623,515, compared with £65,941,319 on September 27, a net decrease of £317,804. The ratio of demand to fixed deposits on October 25 was 103.094 per cent, compared with 99.513 per cent on September 27, 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 o£ New Zealand business on October 25 were £1,049,914, an increase of £23,327. Time liabilities elsewhere than in New Zealand on October 25 totalled £379,087, a decrease of £47,389. The item: New Zealand business, excess of assets over liabilities on October 25, was £19,197,794, as against £18,642,212 on September 27 an increase of £555,582. Reserve balances of the trading banks on October amounted to £7,385,039, as compared with £8,868,042 on September 27, a decrease of £1,483,003. Government securities held by the trading banks on October 25 amounted to £7,781,233, a further increase of £137,736. The amount on October 26, 1936, was £5,215,307, so that there has been an increase during the last 12 months of £2.565.926. Omer securities held on October 25 amounted to £279,- , 510, a decrease during the month of £5,675. Further Increase in Advances. Aggregate advances of the trading banks in New Zealand on October 2a amounted to £51,903,921, as compared with £49,947,036 on September 27, an increase of £1,956,885. The latest figure for advances is £4,783.742 in excess of that for October 26, 1936. Aggregate discounts on October 25, 1937, totalled £742,693, a decrease of £6OOO since September 27.

The total of advances and discounts on October 25 was £52,646,614, as compared with £50,695,729 on September 27, a net decrease of £1,9b0,885. Compared with the figures of a year ago, total advances and discounts show an increase of £4,867,102. The excess of demand and time liabilities over aggregate advances and discounts in New Zealand on October 25 was £12,976,901, as compared with £15,245,590 on September 27, £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:—

to total demand and time liabilities in Now Zealand on October 25 was 80.225 per cent, compared with 76,880 per cent on September 27 and 69.145 per cent on June 28. The aggregate unexercised overdraft authorities on October 25 was £22,900,621, as compared with £23,798,538 on September 27. The total of actual advances and discounts and unexercised overdraft authorities on October 25 was £75,547,235, as compared with £74,494,267 on September 27. Note Circulation Kisin a . The note circulation continues on a higher level than that of last year. The total amount on October 25 was £9,421,425, a further increase of £159,105 since September 27, and £1,368.816 in excess of that on October 26, 1936. The position of the note circulation as at October 25, compared with that at the dates of previous returns, was as shown in the following table:—

(a) Demand liabilities in *33,311,659 New Zealand (b) Time liabilities in New Zealand 32,311,856 (c) Demand liabilities elsewhere thin in New Zealand incurred in respect of New Zealand business 1,1)49,914 (d) 'lime liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 379,097 (j) Notes of own issue in circulation payable in New Zealand (m) New Zealand business —Excess of assets over liabilities 19,197,79a Total £S6,250,31u ’Including transfers from Bank of New Zealand’s long-term mortgage fund of £384,400. ASSETS. (e) Reserve balances held in the Reserve Bank of New Zealand £ 7,385,039 (f) Overseas assets in respect of New Zealand business— (1) In London 7,767,511 (2) Elsewhere than in London 4,090,645 tg) (1) Gold and gold bullion held in New Zealand 1,116 (2) Subsidiary coin held in New Zealand 685,881 (h) Aggregate advances in New Zealand . 51,903,921 (h) Aggregate discounts in New Zealand 742,693 (i) Reserve Bank of New Zealand notes 3,832,266 (k) Securities held in New Zealand— (1) Government 7,781,233 (2) Other than Government 279,540 (1) Value of land, buildings, furniture, fittings and equipment held in New Zealand 1.760,462 Total 186,250,310 (hh) Aggregate unexercised overdraft authorities 22,900,621

London. Elsewhere. Total. 1936. x £ x Jan. 27 .. 11,149,879 6,18:1,192 17,333.071 Mar. 3<) .. 14,143,369 6,226,321 20,369,690 June 29 .. 17,316,669 5,900,334 23,216,993 Sept. 28 .. J2,b9O,571 .'>,785,499 18,676.U7U Dec. 28 .. 7,907,916 5,373,739 13,281,646 Jan. .. 7,361,885 5,221,<70 12,583,655 Mar. 29 .. 11.018,1 14 5,442,lOl 16,490,218 June 28 .. 12,1<4.139 5.027,4.15 17,2'11,57 I Uci. 2, .. 7,767,.,1 1 4,090,645 ll,85b,156

Demand. Time. Total. 1936. £ £ £ Jan. 27 .. 28,827,915 27,033,607 65,861,522 Mar. 30 .. 31,946,454 36,529,960 68,476,414 Jun. 29 .. 30,805,731 36,066,713 66,872,441 Sept. 2.8 .. 28,934,657 34,485,842 63,420,499 Dee. 28 .. 5’1,080,367 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 69,000,502 July 26 .. 34,824,604 33,304,091 68,128,695 Aug. 30 . ■ 33,698,512 33,361,168 67,059,680 Sept. 27 .. 32,890,217 33,051,072 65,941,319 Oct. 25 •• 33,311,6o9 32,311,856 65,623,515

1936. Deposits. Advances & disets. Excess of deposits. Jan. 27 .. 65,861,522 45,649,334 2°,212 188 Mar. 30 .. 68,476,414 44,918,852 562 June 29 .. 66,872,444 45.077.019 21 1 9 o 42,) Sept. 28 .. 63,420,499 45,999.813 17*420 686 1937, 64,204,115 48,281.982 15,922 133 Jan. 25 . . 67,969,981 47,416,649 20,553 Mar. 29 . . 68,872,387 46,954,095 21,918 792 May 31 .. 69,172,919 48,033,164 21,139 i 55 June 28 .. 69,000,502 47,710,899 21,289 603 Sept. 27 .. 65,941,319 50,695,729 J ,'>,245 590 Oct. 25 .. 65,623,515 52,646,614 12,976 901 The ratio of advances and discounts

T. Banks. R, Bank. Total. 1936. £ £ £ Jan. 27 .... 571,768 6.27.7,992 6,547.760 Mar. .30 .... 545,254 6.559,757 7,105,041 June 29 .... 517,74.5 6,704,193 7,221,938 Sept. 28 .... — 7,771,941 7,771,941 Dee. 28 .... — 10.443.223 10,443,223 Jan. 25 .... — S.355,153 8.355.153 Mar. 29 .... — 9,843,930 9,843,930 May 31 .... — 9,040,074 9,040,074 June 28 .... — 8,658,850 8,658,850 Sept, 27 .... — 9,262,320 9,262,320 Oct. 25 .... - 9,421,425 9,421,425