According to statistics published today (Friday) by the Hong Kong Monetary Authority (HKMA), both total deposits and loans of all authorized institutions declined during the month of March. Table 1 provides a summary and comparison with earlier months.
Deposits
Total deposits contracted for the third consecutive month, falling by 1.3%. The decline was mainly attributable to a fall in foreign currency deposits, which more than offset a rise in Hong Kong dollar deposits.
Hong Kong dollar deposits increased slightly by 0.3% in March. The rise was mainly attributable to an increase in time deposits, which exceeded declines in demand and savings deposits. On the other hand, foreign currency deposits contracted by 3.1%, reflecting declines in both US dollar and non-US dollar foreign currency deposits.
Loans and advances
Total loans and advances shrank by 2.2% in March. Of the total, domestic loans declined slightly by 0.5%, while loans for use outside Hong Kong contracted notably by 9.5%.
Analysed by currency, Hong Kong dollar denominated loans increased for the third consecutive month, while foreign currency loans declined in March. As Hong Kong dollar loans increased slightly faster than Hong Kong dollar deposits, the Hong Kong dollar loan-to-deposit ratio rose marginally from 91.4% in February to 91.5% in March.
Money supply
On a seasonally adjusted basis, Hong Kong dollar M1 contracted by 3.1% in March. Of the total, currency held by the public rose by 1.7%, which was more than offset by a 6.8% decline in demand deposits. Unadjusted Hong Kong dollar M1 dropped by 3.6%. Both Hong Kong dollar M2 and M3 were virtually unchanged in March. Compared with a year ago, unadjusted Hong Kong dollar M1 declined slightly by 0.3% in March, while Hong Kong dollar M2 and M3 increased by 4.4% and 4.5% respectively.
Quarterly analysis of loans for use in Hong Kong by major economic sectors
Analysed by economic use, loans for building, construction, property development and investment rose by 2.2% on a quarter-on-quarter basis during the March quarter, and residential mortgages rose slightly by 0.7%. Notwithstanding intensified competition in credit card business, growth of credit card advances slowed to 0.4% during the quarter. On the other hand, loans for electricity, gas and telecommunications contracted notably by 13.2%. Loans for financial concerns and stockbrokers dropped for the second consecutive quarter, alongside corrections in the stock market.
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Caitlin Wong, Manager (Press), at 2878 1687
Hong Kong Monetary Authority
27 April 2001
