Negotiable certificates of deposit
3.7
1986 (6)
of
•
This
December
The outstanding value of negotiable certificates of deposit issued by all deposit-taking institutions amounted to
billion HK$23.0
as at the end of June
represents
increase an
of 13.6% over
end the
1985. Certificates denominated in Hong Kong dollars increased
by 34.0% and accounted for 63.9% of the total at end-June 1986. The low interest rate environment which gave corporate
borrowers the opportunity to swap their floating-rate liabilities for fixed-rate liabilities is apparently a major
for the spectacular growth in
in this area. The use of
such certificates as a source of funds by some financial institutions, particularly those without a broad deposit base, also contributed to the increase. At the end of June, 56.6% of the total outstanding value of negotiable certificates of deposit were held by the monetary sector.
reason
(6)
/3.8
Held by banks and dtcs
NCDs issued by banks and deposit-taking companies in Hong Kong (HK$Mn)
Issued and outstanding
Held outside monetary sector
As at end of
of which
of which
of which
Total
in HK$
Total
in HK$
Total
in HK$
1985 Q1
2838
16,304
6,249
8,101
4,259
8,203
1,989
16,917
7,258
8,624
4,941
8,292
2,317
18,775
9,651
9,938
6,327
8,837
3,324
04
20,219 10,947
10,084
6,706
10,135
4,241
1986 Q1
21,606 12,234
11,415
7,861
10,191
4,373
Q2 22,963
14,674
12,999
9,899
9,964
4,775
24