Monetary Statistics for August 2001

According to statistics published today (Friday) by the Hong Kong Monetary Authority, total deposits increased, while loans and advances of all authorized institutions declined during the month of August. Table 1 provides a summary and comparison with earlier months.

Deposits

Total deposits increased moderately by 1.4% in August, following a decline in the preceding month. The rise was across the board, with both Hong Kong dollar and foreign currency deposits increasing.

Hong Kong dollar deposits rose slightly by 0.9% in August, attributable to increases in savings and time deposits. Foreign currency deposits increased by 2.0%. Of the total, US dollar deposits and non-US dollar foreign currency deposits rose by 2.1% and 1.7% respectively.

Loans and advances

Total loans and advances contracted slightly by 0.3% in August. Of the total, domestic loans declined by 0.7%, while loans for use outside Hong Kong increased by 1.4%, reflecting in part valuation effects.

Analysed by currency, Hong Kong dollar denominated loans declined, while foreign currency loans rose in August. As Hong Kong dollar loans declined while Hong Kong dollar deposits increased, the Hong Kong dollar loan-to-deposit ratio declined slightly to 88.9% in August.

Money supply

On a seasonally adjusted basis, Hong Kong dollar M1 rose by 0.3% in August. Of the total, currency held by the public increased by 1.4%, which was partly offset by a drop in demand deposits. Nevertheless, unadjusted Hong Kong dollar M2 and M3 increased by 0.8% and 0.9% in August. Compared with a year ago, unadjusted Hong Kong dollar M1 increased by 5.4%, while Hong Kong dollar M2 and M3 rose by 2.3% and 2.6% respectively.

For further enquiries, please contact:

Jasmin Fung, Manager (Press), at 2878 8246 or
Caitlin Wong, Manager (Press), at 2878 1687

Hong Kong Monetary Authority
28 September 2001