the year-on-year growth rates of HK$M1, HK$M2 and HK$M3 were 10.3%, 16.6% and 12.1% respectively; the corresponding growth rates during the third quarter of

of 1986 were 6.4%, 5.6% and

4.4%. Except for Ml, the total money supply grew faster than the local currency component, reflecting the faster growth in

foreign currency deposits relative to Hong Kong dollar deposits.

Loans and advances

3.10

The demand

for loans

to

improve

(10)

/

continued

economic activity. Total

extended by

banks and

5.4% during the third

consistent with the revival in

outstanding loans and advances

deposit-taking companies grew by quarter, compared with 0.3% during the same

year. They amounted to $496.1 billion

September 1986.

quarter last

at the end of

(10)

/3.11

Loans and advances made by deposit-taking institutions (HK$Mn)

Loans to finance

As at

imports and exports

Loans for use in

end of

of Hong Kong

Hong Kong

Loans for use outside Hong Kong

Others

Total

1985 Q1

aaaa

32,008

Q2

31,850

224,084 229,577

Q3

30,459

233,882

145,727 25,117 426,935 147,693 25,088 434,208 146,570 24,392 435,303

Q4

30,855

234,943

146,319 27,847 439,964

1986 Q1

222

31,885

240,655

02

33,882

247,037

Q3

34,400

262,058

155,372 31,329 459,241 159,185 30,427 470,531 163,608 36,048 496,114

27

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