According to statistics published today (30 November 2000) by the Hong Kong Monetary Authority (HKMA), total deposits increased, while loans and advances of all authorised institutions decreased during the month of October. Table 1 provides a summary and comparison with earlier months.
Deposits
Total deposits rose slightly by 0.4% in October. The rise was mainly attributable to an increase in foreign currency deposits, which more than offset a decline in Hong Kong dollar deposits.
Hong Kong dollar deposits decreased slightly by 0.3% in October, following four consecutive months of increase. The decline was mainly attributable to a fall in time deposits, which more than offset increases in demand and savings deposits. Foreign currency deposits increased slightly by 1.1% during the month. Of the total, US dollar deposits rose notably by 3.1%, while non-US dollar deposits contracted by 2.2%. The decline in the latter was largely due to valuation changes.
Loans and advances
Total loans and advances shrank by 1.1% in October. Domestic loans declined for the second consecutive month, falling by 1.0%. Meanwhile, loans for use outside Hong Kong contracted by 1.5%.
Analysed by currency, both Hong Kong dollar denominated loans and foreign currency loans declined modestly in October. As Hong Kong dollar deposits declined by less than Hong Kong dollar loans during the month, the Hong Kong dollar loan-to-deposit ratio fell slightly to 91% in October.
Money supply
On a seasonally adjusted basis, Hong Kong dollar M1 increased by 2.5% in October, while currency held by the public and demand deposits rose by 0.4% and 4.2% respectively. Unadjusted Hong Kong dollar M1 increased by 3.5%, while both Hong Kong dollar M2 and M3 contracted by 0.3%. Compared with a year ago, Hong Kong dollar M1 rose by 7.1% in October, while both Hong Kong dollar M2 and M3 increased by 4.3%.
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Caitlin Wong, Manager (Press), at 2878 1687
Hong Kong Monetary Authority
30 November 2000
Note:
Among the various monetary aggregates, seasonal patterns are found in Hong Kong dollar M1, currency held by the public, and demand deposits. The HKMA will publish seasonally adjusted data on the three series starting from the reference month of October 2000. The deseasonalised data facilitate the analysis of underlying trends. Seasonally adjusted series for the period from January 1990 to October 2000 are attached at Annex 1. For details, please see the November 2000 issue of the HKMA Quarterly Bulletin.
