The following table shows the amount of cash held by the Bank at the end of each Financial Year. In common with the Balance Sheet presentation of a Bank's assets (in reflecting the institute's degree of liquidity), this most liquid form of Asset was listed first - generally being specified as Cash in hand at Head Office, Branches and Joint Stock Banks.
Although these values are just a snapshot on one day in the year, the table also expresses the amount of cash as a ratio to the 'Amount Standing to the Credit of Depositors'. This ratio is meant to measure the Bank's ability to keep its cash at a minimum level that will enable depositors' demands for withdrawals to be met on a day-to-day basis, but not be too high as to lose income on uninvested funds - ie: cash held in excess of requirements that is not earning any interest.

Generally, a ratio of 5% of cash to deposits would be acceptable in meeting the criteria detailed above, and proportions around this value were usually seen in the year-end figures from 1933 to 1976.

 

Very low ratios in the Bank's first three years probably reflect the fact that withdrawals of cash were unusual at this time. The Bank's Annual Reports do not give any reason for the large amounts held in the remaining years of the 1920s, but they may be due to the possibility that balances held with Joint Stock Banks were earning interest at this time.

 

The amount of cash required to be held would also have reflected the withdrawal conditions currently applicable. For example, in the Bank's early years, although £30 could be withdrawn on demand from accounts kept at Head Office, there was a limit of £5 on demand from accounts kept at a branch. Although the £30 limit was soon extended to all branches, it was not until 1960 that the amount was increased to £50.

 

The introduction of cheque accounts (total balance payable on demand, but generally withdrawn via a third party cheque); and accounts with longer periods of notice (the Investment Department and Term Deposits) would have impacted on the amount of cash a branch needed to hold. A further factor in due course was the popularity of making payments by credit card, which were an element of the projected 'cashless society'. But, cash has always remained a popular medium, with the invention of ATMs (Automated Teller Machines) making its dispensation quicker and easier.

 

All Year-end dates are March 31st, except from 1976 (*) when the date is November 20th. The amounts and ratios for the years 1977 to 1979 are not comparable with the preceding figures, as the amounts reported in these three years includes Balances with Bankers - most of which was repayable within seven days.