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Press Releases

Monetary Statistics for March 1998

1. According to statistics published today (30 April) by the Hong Kong Monetary Authority, total deposits continued to rise in March 1998, while loans and advances fell. Table 1 gives a summary and comparisons with earlier months.

Deposits

2. Total deposits increased by a modest 0.1% in March 1998, having risen by 1.5% in February 1998. HK$ deposits rose by 1.5%, following an increase of 1.9% in February, while foreign currency deposits declined by 1.7%, reversing a 0.9% rise in the previous month.

3. During the month, HK$ deposits increased across-the-board, with demand deposits rising by 5.2%, savings deposits by 4.6% and time deposits by 0.2%. The rise in HK$ deposits was in line with reduced volatility in the region's financial markets.

4. As for foreign currency deposits, US$ deposits dropped by 3.0%, having increased by a modest 0.3% in February, while non-US$ foreign currency deposits decreased by 0.1%, after a growth of 1.6% in the previous month.

Loans and advances

5. Total loans and advances fell by 6.7% in March. Much of the drop reflects a 14.2% contraction of offshore loans. In particular, Euroyen Impact Loans (EYIL), which account for more than 30% of total loans and advances of the Hong Kong banking system, have been falling sharply. EYIL are loans made to customers in Japan by a domestic branch of a Japanese bank but booked in an overseas branch of the bank. These loans generally have tax and funding cost advantages for customers. Reflecting the more cautious lending stance by Japanese banks and the need to downsize balance sheets, the decline of EYIL has accelerated, falling by 23% in the first quarter of this year. The impact of the fall in EYIL on Hong Kong's economic activity and credit situation should be small, as Hong Kong serves only as a booking centre for these loans.

6. Meanwhile, reflecting the slow-down in domestic economic activity and reduced loan demand, loans for use in Hong Kong also dropped slightly by 0.8%, with loans for trade financing falling by 2.4%, and other loans declining by 0.6%.

7. During the month, HK$ loans were virtually unchanged, while foreign currency loans dropped by 11.9%. As a result, the HK$ loan-to-deposit ratio declined to 111.3% at end-March, from 113.0% at end-February.

Quarterly analysis of loans for use in Hong Kong by major economic sector

8. Domestic credit fell by 1.2% in the first quarter of 1998, with loans to most sectors registering either a slow-down or a fall, as banks were cautious in lending and loan demand was weakened by higher interest rates. Along with the subdued asset markets, growth of residential mortgage loans slowed to 1.8%, while loans for building, construction and property development and investment dropped by 0.6%. Likewise, lending to financial concerns and stockbrokers also fell by 0.9% and 37.1% respectively. In line with the slack performance of retail sales, loans for wholesale and retail trades dropped by 3.8%, reversing a 4.1% growth in the preceding quarter. Lending to the manufacturing sector fell by 2.7% and loans for trade financing by 5.7%.

Money supply

9. HK$ M1 rose by 1.6% in March, as a 5.2% increase in demand deposits more than offset the decrease of 2.8% in cash held by the public. Meanwhile, HK$M2 and HK$M3 were both up by 1.3%. In the twelve months to March, HK$M1 dropped by 6.5%, but HK$M2 and HK$M3 grew by 7.8% and 7.5% respectively, in line with the growth of nominal GDP.

Note to editor

10. For enquiries, please contact the Press and Publications Section, Hong Kong Monetary Authority. (Telephone number: 2878 8261)

Hong Kong Monetary Authority

30 April 1998



 

TABLE 1 : MONETARY STATISTICS - Mar 1998








(HK$mn)



Earlier months (% change to Mar 1998)

















Mar 1998Feb 1998
Dec 1997
Mar 1997
Money Supply






















M1 - HK$
185,507 182,624 (1.6) 188,142 (-1.4) 198,406 (-6.5)
Foreign currency
16,414 18,821 (-12.8) 19,958 (-17.8) 19,375 (-15.3)
Total
201,921 201,445 (0.2) 208,100 (-3.0) 217,780 (-7.3)
M2 - HK$@
1,678,693 1,657,064 (1.3) 1,652,666 (1.6) 1,557,671 (7.8)
Foreign currency*
1,129,853 1,145,716 (-1.4) 1,091,784 (3.5) 1,061,435 (6.4)
Total
2,808,546 2,802,781 (0.2) 2,744,450 (2.3) 2,619,105 (7.2)
M3 - HK$@
1,693,582 1,672,580 (1.3) 1,670,386 (1.4) 1,574,840 (7.5)
Foreign currency*
1,185,249 1,203,275 (-1.5) 1,156,494 (2.5) 1,126,711 (5.2)
Total
2,878,831 2,875,855 (0.1) 2,826,880 (1.8) 2,701,551 (6.6)















Notes and coins in circulation
91,684 94,260 (-2.7) 92,666 (-1.1) 94,568 (-3.0)
of which held by public
81,205 83,507 (-2.8) 80,589 (0.8) 81,341 (-0.2)






























Total Deposits






















Total Demand deposits
120,716 117,938 (2.4) 127,511 (-5.3) 136,439 (-11.5)
Total Savings deposits
517,489 504,462 (2.6) 491,019 (5.4) 504,542 (2.6)
Total Time deposits
2,075,735 2,087,531 (-0.6) 2,047,208 (1.4) 1,900,807 (9.2)
With licensed banks
2,020,890 2,029,879 (-0.4) 1,980,735 (2.0) 1,841,026 (9.8)
With restricted licence banks
42,314 44,615 (-5.2) 51,945 (-18.5) 44,417 (-4.7)
With deposit-taking companies
12,531 13,037 (-3.9) 14,528 (-13.7) 15,364 (-18.4)
HK$ deposits@
1,557,098 1,533,414 (1.5) 1,537,616 (1.3) 1,450,751 (7.3)
Demand deposits
104,302 99,117 (5.2) 107,553 (-3.0) 117,065 (-10.9)
Savings deposits
362,660 346,841 (4.6) 336,061 (7.9) 355,826 (1.9)
Time deposits@
1,090,135 1,087,456 (0.2) 1,094,002 (-0.4) 977,859 (11.5)
US$ deposits*
617,730 636,802 (-3.0) 605,902 (2.0) 515,239 (19.9)
Other foreign currency deposits*
539,112 539,714 (-0.1) 522,220 (3.2) 575,798 (-6.4)
Foreign currency deposits*
1,156,842 1,176,516 (-1.7) 1,128,122 (2.5) 1,091,038 (6.0)
All deposits
2,713,940 2,709,930 (0.1) 2,665,738 (1.8) 2,541,788 (6.8)















Foreign currency swap deposits
40,194 36,759 (9.3) 42,332 (-5.1) 35,845 (12.1)






























Total Loans and advances






















Loans for use in H.K.
2,203,438 2,220,259 (-0.8) 2,230,629 (-1.2) 1,965,750 (12.1)
To finance H.K.'s visible trade
162,479 165,213 (-1.7) 172,337 (-5.7) 164,080 (-1.0)
To finance merchandising trade not touching H.K.
19,513 21,330 (-8.5) 20,663 (-5.6) 20,066 (-2.8)
Other loans for use in H.K.
2,021,446 2,033,717 (-0.6) 2,037,629 (-0.8) 1,781,604 (13.5)
Loans for use outside H.K.#
1,517,192 1,768,882 (-14.2) 1,891,422 (-19.8) 1,971,251 (-23.0)
Other loans for use outside H.K.
1,474,825 1,726,342 (-14.6) 1,843,656 (-20.0) 1,927,924 (-23.5)
Other loans where the place of use is not known
42,367 42,540 (-0.4) 47,766 (-11.3) 43,328 (-2.2)
Loans in HK$
1,732,612 1,732,354 (0.0) 1,742,885 (-0.6) 1,582,857 (9.5)
Loans in US$
742,983 770,996 (-3.6) 783,449 (-5.2) 667,465 (11.3)
Loans in other foreign currencies
1,245,036 1,485,791 (-16.2) 1,595,716 (-22.0) 1,686,679 (-26.2)
Loans in foreign currencies
1,988,019 2,256,787 (-11.9) 2,379,165 (-16.4) 2,354,144 (-15.6)
Total loans and advances
3,720,630 3,989,141 (-6.7) 4,122,050 (-9.7) 3,937,001 (-5.5)















* Adjusted to exclude foreign currency swap deposits.
@ Adjusted to include foreign currency swap deposits.
# Including those where place of usage is unknown.






























Note : Data may not add up to total due to rounding.

 

TABLE 2 : QUARTERLY ANALYSIS OF LOANS FOR USE IN HONG KONG BY SECTOR - MAR 1998





Adjusted# % change from earlier quarters to Mar 1998  

















SectorsMar 1998
Dec 1997Sep 1997Mar 1997


(HK$ Mn)













Trade Financing 181,992
-5.7 -7.8 -1.2

















Manufacturing 107,866
-2.7 -2.8 -2.8

















Transport and transport equipment 98,291
2.6 5.0 17.6

















Building, construction, property 437,408
-0.6 1.6 17.9

development and investment






















Wholesale and retail trade 197,886
-3.8 0.1 3.9

















Financial concerns * 257,214
-0.9 0.9 10.5

















Stockbrokers 9,705
-37.1 -78.9 -45.1

















Individuals:














to purchase flats in the Home 59,736
-1.1 -0.4 10.7

Ownership Scheme and Private






Sector Participation Scheme














to purchase other residential 490,755
2.1 4.4 25.3

property














other purposes 152,299
-1.0 -2.5 9.3









Others 210,287
-2.3 -4.4 11.2









Total 2,203,438
-1.2 -1.5 12.1
























# With the introduction of the new Return on Loans and Advances and Provisions (as revised from the Return on Loans and Advances




for Use in Hong Kong) as from December 1994, a number of AIs have reclassified certain components. As a result, the figures are not




strictly comparable with those of previous quarters. The percentage changes given above have been adjusted, so far as possible, to




remove the reclassification effect and therefore cannot be calculated directly from the published figures.



* This excludes funds advanced to authorized institutions.















Note : Data may not add up to total due to rounding.
Last revision date: 1 August 2011
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