According to statistics published today (28 April 2000) by the Hong Kong Monetary Authority, total deposits of all authorised institutions increased, while total loans and advances decreased during the month of March. Table 1 provides a summary and comparison with earlier months.
Deposits
Total deposits increased moderately for the second consecutive month, by 0.7% in March. As foreign currency deposits rose faster than Hong Kong dollar deposits, the share of Hong Kong dollar deposits in total deposits dropped slightly from 54.7% in February to 54.6% in March.
Hong Kong dollar deposits increased moderately by 0.5% in March, following a decline of 0.5% in February. Among different categories of deposits, demand deposits decreased notably by 14.0% in March, after a rise of 9.5% in the preceding month. Savings and time deposits increased by 1.7% and 1.5% respectively. The decline in demand deposits was in part attributable to a high base of comparison in February.
Foreign currency deposits increased for the second consecutive month, by 1.0% in March. Of the total, non-US dollar deposits increased by 3.0%, while US dollar deposits declined moderately by 0.3%.
Loans and advances
Total loans and advances contracted by 1.0% in March. Of the total, domestic loans increased for the second consecutive month, by 0.1% in March. The rise reflected in part short-term borrowing amid buoyant share flotation activity. On the other hand, loans for use outside Hong Kong registered a decline of 3.5%. Analysed by currency, Hong Kong dollar-denominated loans increased for the third consecutive month, by 0.2% in March. Meanwhile, foreign currency loans shrank by 2.6%. As Hong Kong dollar deposits increased faster than Hong Kong dollar loans, the Hong Kong dollar loan-to-deposit ratio dropped slightly from 93.4% in February to 93.2% in March.
Quarterly analysis of loans for use in Hong Kong by major economic sector
Following a decline of 1.2% in the December quarter, domestic loans remained stable in the March quarter. Loans for residential mortgages, transport and transport equipment, building, construction, property development and investment, stockbrokers, and credit card advances registered positive quarter-on-quarter growth. In line with the recovery in retail sales, the decline in loans for wholesale and retail trades moderated to 0.6% in the March quarter, from 5.4% in the December quarter. The decline in loans for trade financing also slowed, from 6.4% in the December quarter to 1.9% in the March quarter.
Money supply
Hong Kong dollar M1 declined by 9.4% in March, reflecting decreases in currency held by the public and demand deposits. Meanwhile, both Hong Kong dollar M2 and M3 increased moderately by 0.5% during the month. Compared with a year ago, Hong Kong dollar M1 rose by 9.7% in March, while Hong Kong dollar M2 and M3 were up by 3.9% and 3.8% respectively.
Note to editors
For enquiries, please contact the Press Section, Hong Kong Monetary Authority (Telephone: 2878 8261).
Hong Kong Monetary Authority
28 April 2000
