Annual Reports - 1952
On March 11th 1952, shortly before the end of the Bank's financial year, the UK's Bank Rate was increased from 2% to 4%. At this time, inflation was approaching 10%, and the Committee's report states that "the high cost of living has depleted the margin available for saving out of personal incomes, and has encroached in many cases upon past savings". Withdrawals for the year exceed the amount deposited by 2,565,242, but over 4-million of withdrawals are accounted for by seasonal (summer holidays and Christmas) repayments; closure of accounts of deceased depositors; and the purchase of National Savings. Despite the increase in Bank Rate, the Bank's income from Investments is slightly lower than the previous year. Interest paid to Depositors remains at 2%, and there is no margin available to increase that rate - an increase to 3% would have cost over 200,000 when the surplus of Income over Expenditure was less than 20,000. However, the Bank's General Reserves were boosted to 603,125 by a profit of 30,625 on the sale of certain investments. The inability of the Bank to increase its investment income appears to be due to too high a proportion of investments being held in fixed rate securities - a problem that persists throughout the 1950s, when interest received is always about 2-million per annum. The rate of interest charged by the Bank on mortgages is increased from 3% to 4%, but this only applies to new advances. The aggregate deposit limit on individual depositors was raised from 2,000 to 3,000 by an amendment to the Bank's Regulations.
(1) Published Report
Annual Reports
Published  Report (cont.)