HONG KONG MONETARY AUTHORITY Annual Report 1996
NOTES ON THE ACCOUNTS*
13. BALANCE OF BANKING SYSTEM
14. EXCHANGE FUND BILLS AND NOTESUpon the implementation of the new interbank payment system based on Real Time Gross Settlement principles in December 1996, all licensed banks maintain a clearing account with the Monetary Authority for the account of the Exchange Fund. The aggregate balance in these accounts represents the total level of liquidity in the interbank market. The comparative figure for 1995 represented the balance of the Clearing Account which The Hongkong and Shanghai Banking Corporation Limited, as the Management Bank of the Clearing House of The Hong Kong Association of Banks, maintained with the Exchange Fund in accordance with the Accounting Arrangements in operation from 1988 to December 1996.
Exchange Fund Bills are issued for maturities not exceeding one year. Exchange Fund Notes are categorised below according to their remaining term to maturity.
| 1996 HK$ million | 1995 HK$ million |
|||||
|---|---|---|---|---|---|---|
| Exchange Fund Bills |
64,702
|
40,576
|
||||
| Exchange Fund Notes | ||||||
| Maturing within 1 year |
4,169
|
2,612
|
||||
| Maturing after 1 year but within 5 years |
11,523
|
9,429
|
||||
| Maturing after 5 years |
3,115
|
508
|
||||
| Total Exchange Fund Bills and Notes | 83,509 | 53,125 | ||||