1981, the discrepancy reflects the fact that foreign currency deposits with banks and deposit-taking companies were increasing faster than their Hong Kong dollar counterparts.
This was particularly So in March, as a result of the exemption from interest withholding tax of interest on foreign
currency deposits taken in Hong Kong. During the first three
months of 1982, foreign currency deposits with banks and
deposit-taking companies rose by 43%, with the result that as
a proportion of total deposits they increased from 18% at the
end of December 1981 to 25% at the end of March.
3.7
As the shift of
deposits from deposit-taking
companies to banks apparent in the last quarter of 1981
continued (partly under the influence of the factors described
in paragraphs 3.3 to 3.5 above) (7), M2 grew faster than M3
during the first quarter.
M1,
however, fell slightly during
(7)
/the
Quarterly growth rates of deposits with deposit-taking institutions (%)
(quarter on previous quarter)
Deposits with
Deposits with deposit-taking
banks
companies
Total
1981 Q1
Q3
aaaa
+5.2
+10.9
+7.1
Q2
+5.5
+28.1
+13.1
+0.9
-1.0
+0.2
04
+7.5
-0.1
+4.6
1982 Q1
+14.6
-5.6
+7.3
As at end of
March 1982
($mn)
119,688
55,843
175,531
15