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SATURDAY, MARCH 3, 1979
THE ANNUAL GROWTH RATE OF M2 ACCELERATED SLIGHTLY IN JANUARY, HAVING FALLEN IN EACH OF THE PREVIOUS THREE MONTHS BUT, AS EXPLAINED ABOVE, SEASONAL FACTORS MAKE THIS A MISLEADING COMPARISON.
LOOKING AT THE THREE-MONTH MOVING AVERAGE TO SMOOTH OUT MONTHLY FLUCTUATIONS, M2 IN THE PERIOD NOVEMBER, 1978, TO JANUARY, 1979, WAS 26.2 PER CENT ABOVE THE SAME MONTHS OF 1977-78, AND M1 WAS 22.2 PER CENT HIGHER.
ON THIS COMPARISON, THE GROWTH RATE OF BOTH MEASURES HAS FALLEN FOR EACH OF THE LAST THREE MONTHS.
BANKING STATISTICS
BANK LOANS AND ADVANCES IN HONG KONG CONTINUED TO INCREASE IN JANUARY, WITH THE TOTAL OUTSTANDING RISING DURING THE MONTH BY $2,263 MILLION (4.3 PER CENT) TO $55,077 MILLION, WHICH WAS 45.2 PER CENT ABOVE THE LEVEL OF JANUARY, 1978.
THIS VERY RAPID RATE OF GROWTH CONTINUED THE TREND APPARENT SINCE JUNE, 1978, WITH THE INCREASE IN LOANS AND ADVANCES, ON AN ANNUAL COMPARISON, ACCELERATING EACH MONTH. LOOKING AT THE THREE-MONTH MOVING AVERAGE, LOANS AND ADVANCES IN NOVEMBER, 1978, TO JANUARY, 1979, WERE 43.9 PER CENT ABOVE THE SAME MONTHS OF 1977-78.
THE NET IDENTIFIABLE FOREIGN ASSETS OF THE BANKS FELL BY $753 MILLION TO $15,414 MILLIONS A FALL IN CLAIMS ON BANKS ABROAD WAS NOT ENTIRELY OFFSET BY A RISE IN OTHER OVERSEAS ASSETS. LOANS ABROAD ROSE BY $57 MILLION TO $16,468 MILLION.
THE AVERAGE LIQUIDITY RATIO OF THE BANKING SECTOR FELL FROM 46.2 PER CENT TO 45.4 PER CENT. THE RATIO OF LOANS AND ADVANCES IN HONG KONG TO DEPOSITS ROSE FROM 79 PER CENT TO 81 PER CENT.
DEPOSIT-TAKING COMPANY STATISTICS
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DEPOSIT LIABILITIES OF DEPOSIT-TAKING COMPANIES ROSE BY $1,494 MILLION (14.3 PER CENT) IN JANUARY TO $11,941 MILLION (NO FIGURES ARE AVAILABLE FOR THESE COMPANIES EARLIER THAN DECEMBER 1978).
LOANS AND ADVANCES IN HONG KONG FELL BY $26 MILLION (0.3 PER CENT) TO $10,113 MILLION, WHILE LOANS AND ADVANCES ABROAD ROSE BY $781 MILLION (3.7 PER CENT) TO $21,946 MILLION.
THE NET IDENTIFIABLE FOREIGN ASSETS OF DEPOSIT-TAKING COMPANIES ROSE BY $1,105 MILLION TO $6,449 MILLION, REFLECTING THE INCREASE IN LOANS ABROAD AND A FALL IN BORROWINGS FROM BANKS ABROAD.
THE NET CLAIMS OF DEPOSIT-TAKING COMPANIES ON BANKS IN HONG KONG ROSE FROM $374 MILLION TO $1,430 MILLION.
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