parti: objectives and features of the new reporting system 159 - TARA

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18 The relevant liability and asset items of these institutions are as follows Resident Deposit liabilities SI million Decembei 1982 December 1983Change December 1982/December 1983 Amount ( / ( of M3 Amount Vo of Mil Amount ( /< Building societies State-sponsoied Financial institutions POSB and TSBs 1,681 2 21] 1 1,998 9 26 0 «317 7 «18 9 351 5 4 8 377 9 4 9 « 26 4 « 7 5 676 6 9 3 768 3 10 0 « 91 7 «13 6 Resident Insh-pound and foreign-currency series - See Appendix B 21 It is also possible to aggregate components of wider money supply series in a way which attempts to reflect the degree of 'moneyness' of particular components SeeHonohan, P andD Lynch, "Aggregating Components of the Money Supply" in the fortcoming Central Bank of Ireland, Annual Report, Spnng 1984(1) 22 This, of coui'se, does not prevent different components of such a broad money stock fiom being analysed separately 23 The r esults of emper ical tests on the old money supply series support the use of wider aggregates, but the applicability of these results to the new aggregates would need to be confnmed See, Browne, FX and T O'Connell, "The Demand for Money Function in Ireland Estimation and Stability", Economic and Social Review, Vol 9, No 3, pp 227-247 and various internal Central Bank estimates of the demand for money 184
APPENDIX A: Assessing The Appropriateness of Adjusting For Items in Transit In this Appendix an attempt is made to assess the extent to which adjusting for items in transit achieves the objective of effecting a reversal of transactions in the case of those items in transit for which the reporting bank has not received v&lue, while at the same time, treating those items for which it has received value as if they had reached their destination. A breakdown of in-transit items provided by one of the Associated Banks (Bank A) is used and the effects of the adjustment on these components of in-transit items are examined. The main contents of cheques in transit as reported in Bank A's monthly return are as follows: 1. cheques or other debits on other Bank A branches in transit from collecting branch to clearing department; 2. cheques or other debits on Bank A branches in transit from clearing department to drawee branch; 3. cheques or other debits on other banks in transit from collecting branch to clearing department of Bank A; Less; 4. credits for other Bank A branches m transit from collecting branch to clearing department; 5. credit for Bank A branches in transit from clearing department to accountholding branch; and 6. credits for other banks in transit from collecting branch to clearmg department of Bank A. In the following examples let us assume that X and Y are customers of Bank A but hold their accounts at different branches and that Z is a customer of Bank B (another Associated Bank). Example 1: X lodges Y's cheque for £100 in this Bank A branch - X's account is credited. At the bank-return date this cheque is in transit to the clearing department with the result that there is an adjustment to Y's overdraft or current account pending. The adjustment will have the effect of increasing Y's overdraft or reducing his current account and it has the effect of treating the in-transit item as if it had reached its destination. Example 2: X lodges Y's cheque for £100 in his Bank A branch - X's account is credited. At the bank-return date the cheque is in transit to the drawee's branch, where it will have the effect of increasing Y's overdraft or reducing his current account. The adjustment used at present has the effect of treating this transaction as if it reached its destination. Thus, from an accounting standpoint, Examples 1 and 2 are treated in a similar manner. 185
Page 1 and 2: Journal of Statistical and Social I
Page 3 and 4: doubtful debts, as well as their pr
Page 5 and 6: (n) (in) (IV) resident individuals
Page 7 and 8: the loans are, like deposits, of sh
Page 9 and 10: ecorded money supply series (apart
Page 11 and 12: 3 3 The Economic Approach to the Me
Page 13 and 14: the deposit should be the same, whi
Page 15 and 16: knowledge of the state of the accou
Page 17 and 18: ensure that, as far as possible, so
Page 19 and 20: However, it is possible that such s
Page 21 and 22: estricted to accounts which, more l
Page 23 and 24: effects on monetary aggregates in c
Page 25: 12 If a fully accurate measure of t
Page 29 and 30: could be argued that in the case of
Page 31 and 32: IR£ million TABLE Bl: COMPONENTS O
Page 33 and 34: IR£ million Bankreturn dates Ml Co
Page 35 and 36: TABLE B2 MONEY SUPPLY SERIES (c) RE
Page 37 and 38: IR£ million TABLE B4 DOMESTIC CRED
Page 39 and 40: The revised treatment of accrued in
Page 41 and 42: statistics One should be cognisant,
Page 43 and 44: Such a view of the likely users wou
Page 45 and 46: eaching the Greek position of disin
Page 47: also hoped, using data from certain

parti: objectives and features of the new reporting system 159 - TARA

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